Cardano’s decentralized finance (DeFi) sector has experienced rapid expansion, with total value locked (TVL) climbing 13% in Q4 2024. ADA’s price jumped 126% over the same period, driving its market capitalization to $30,3 billion. This surge reflects heightened network engagement and growing investor interest.

Network Upgrades Enhance Performance

Cardano has implemented key improvements, including the Ouroboros Peras upgrade and the Chang Hard Fork. The Ouroboros Peras update introduced stake-based governance and accelerated transaction speeds, while the Chang Hard Fork established a framework for on-chain governance, granting ADA holders more control over protocol decisions.

Strengthening DeFi and NFT Ecosystem

The DeFi landscape on Cardano continues expanding, with Liqwid Finance overtaking Minswap as the dominant protocol, now holding $113,6 million in TVL. Meanwhile, DEX trading volumes have surged 271% quarter-over-quarter. The NFT market has also seen increased activity, with jpg.store accounting for 20% of all transactions among Cardano’s decentralized applications.

What Lies Ahead for Cardano?

With the steady rise of stablecoin adoption, increasing participation in DeFi, and continuous protocol advancements, Cardano is solidifying its role in decentralized finance. If its momentum persists, ADA could further strengthen its standing in the crypto ecosystem.