Cardano’s top lending apps, Liqwid and Lenfi, saw their total value locked (TVL) soar by over 300% in the past month to record levels, according to data from DefiLlama. Liqwid, the largest decentralized finance (DeFi) app on Cardano, rose 38% in the past week alone to reach a record $177 million in TVL on Sunday, November 24.
The two lending dapps, like many other Cardano-based dapps, have benefited from the recent price increase in ADA, Cardano’s native cryptocurrency.
ADA has leveraged the general bullish sentiment to increase to the highest level since April 2022, outperforming Bitcoin itself over the last month. Investors have been positive about recent reports that Cardano founder Charles Hoskinson discussed with US lawmakers to help establish a comprehensive crypto regulatory framework.
ADA’s role as a primary asset on Cardano lending apps has significantly contributed to their TVL growth.
On Liqwid, ADA accounts for 48% of total collateral value, followed by the native LQ token with 47%. LQ’s share has surged from less than $1 million in September to over $80 million as of November 24, according to DefiLlama.
On November 21, Liqwid saw record daily inflows, with nearly $14 million worth of crypto being deposited on the platform.
Meanwhile, Lenfi, Cardano’s second-largest lending app, saw its TVL surge from $15 million at the beginning of November to a record $60 million on November 24. Lenfi migrated all assets to its v2 in February of this year.
The most deposited token on Lenfi is SNEK, Cardano’s largest meme coin by market cap. It has a $36 million TVL on Lenfi, followed by ADA with $5.8 million, and the native LENFI token with $5.7 million.
Cardano is one of the oldest layer 1 chains out there. It has often been associated with low DeFi activity, but recent developments may lead to increased interest in its dapps.
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