Looking to invest in Cardano? Here’s how much you should allocate based on its TVL
Cardano is known for its scientific approach to building a fair, sustainable, and decentralized network. A Kraken report called Cardano, a Nakamoto-style cryptocurrency with a Bitcoin-like supply model that deflates over time. In fact, the Cardano foundation has been citing its bullish predictions for its native token. However, it is to be noted, the price trajectory of the coin has willingly obliged the BTC for over four months now.
Undoubtedly, it’s been a wild guess for investors, if they should cut losses at $1.07. At the back of decreasing volume, the coin looks primed for a bear run to reach $1.013 support. Notably, a sense of worry seems to be predominating the market. While it might be difficult to decide what percentage of portfolio one should allocate to ADA, there are certain metrics that might help one make a better decision.
Cardano was one of the most developed chains in 2021 with many contributors to it. It means the number of developers who worked together to develop Cardano was the highest in the whole crypto space. The high development activity is essentially a positive sign for Cardano holders. But the real question remains- Does it have an impact on ADA’s near-term price performance? Well, total value locked has the answer.
Total Value Locked on the Cardano network skyrocketed to $96.12 million, at the time of writing. For the first time in fourteen months, analysts argue Cardano is undervalued, sharing a bullish outlook on altcoin. However, it is to be noted that the increase in TVL is primarily driven by SundaeSwap.
When SundaeSwap got released in January 2022, the network started to see an exponential rise in Total Value Locked on Cardano. The token staking platform, at the time of writing, held 96.94%
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