Cardano price has made a strong bullish trend as its ecosystem makes a comeback. ADA jumped to a high of $0.40 on Wednesday, which was ~35% above the lowest point in March of this year. This comeback has pushed the coin’s market cap to over $13 billion.
Cardano DeFi ecosystem is doing well
Cardano is a well-known blockchain project that aims to become a leading player in the Web3 space. It is an Ethereum challenger that is known for its superior speeds and low transaction costs. Also, it is a proof-of-stake network that has low carbon emissions.
The success of a blockchain project like Cardano depends on activities in its ecosystem. In this case, it depends on its success in areas like decentralized finance (DeFi), non-fungible tokens (NFT), the metaverse, and other Web3 areas.
A closer look at Cardano’s DeFi ecosystem shows that it is thriving. Data shows that the total value locked (TVL) in its ecosystem has soared to $A372.7 million, which is a record high. In dollar terms, the TVL stands at $145 million, which is lower than its record high of $308 million. The dollar terms can be deceiving since it peaked when Cardano’s ADA was trading at $3.
Read more: How to buy Cardano.
A look at its DeFi ecosystem shows that most platforms are thriving, The biggest ones are Minswap, Indigo, WingRiders, and Djed Stablecoin.
Meanwhile, Cardano’s NFT segment is also doing well. In March, the total sales of Cardano’s NFTs came in at over $10 million, which is a good number. Unique buyers were over 22k while unique sellers were over 4,350.
The next key catalyst for Cardano price and its ecosystem is the upcoming introduction of its Ethereum Virtual Machine (EVM). Cardano hopes to become EVM-compatible in the next few weeks. This means that Cardano users will be able to access Ethereum dApps directly from their ADA wallets.
ADA price forecast
In January, I predicted that Cardano will have a good performance in 2023 The 4H chart shows that Cardano price has been in a strong bullish trend in the past few days. In this period, the coin has formed an ascending channel pattern that is shown in black. The coin has moved slightly above the middle line of this channel. It has also moved above the 25-day and 50-day moving averages and is at the 78.6% retracement level.
Therefore, I suspect that ADA price will continue soaring as buyers target the next key resistance point at $0.420. A drop below the support at $0.38 will invalidate the bullish view.