Cardano (ADA) falls behind Ethereum, TVL decreases... Will the 'PRIME' reversal card work?

▲ Cardano (ADA)/AI-generated image

Cardano (ADA), with its decreased Total Value Locked (TVL), is targeting a multi-billion dollar market with three growth strategies.

According to CryptoBasic on August 6 (local time), Cardano's Total Value Locked (TVL) decreased by 1.7% over 24 hours, recording $68.17 million. Stablecoin deposits accounted for the majority of the total TVL at $64.21 million. Dano Finance led with $14.15 million, followed by Minswap with $13.18 million, and Liqwid with $12.36 million.

The gap with major smart contract platforms remains significant. Ethereum (ETH)'s TVL is $41.32 billion, and Solana (SOL)'s is $4.78 billion. For Cardano to emerge as a major competitor in the decentralized finance (DeFi) market, it needs to substantially increase its deposits.

Charles Hoskinson, founder of Cardano, proposed a complementary strategy rather than direct competition with other blockchains. The core of this is Cardano PRIME, driven by AlphaGrowth. PRIME is a plan to increase eligible TVL by more than $200 million over 12 months. The goal is to raise the baseline deposits, currently around $90 million, to over $290 million within one year.

AlphaGrowth requested 120 million ADA from the Cardano Treasury for operational funds. The proposal includes a fixed fee of 11 million ADA and performance-based rewards of up to 29 million ADA, paid upon achieving pre-defined growth targets. PRIME focuses on reducing ecosystem fragmentation and increasing capital efficiency. Expanding user activity, protocol fees, and on-chain participation were also presented as key tasks.

Hoskinson also identified RealFi, which connects real-world financial services with decentralized finance, and Pogun, which brings Bitcoin (BTC) liquidity to Cardano, as growth drivers. He stated, "When the Total Value Locked reaches billions of dollars, the market's perception will change, and people will start to see Cardano's inherent competitiveness."

[Article Summary]

-Cardano's Total Value Locked (TVL) decreased by 1.7% over 24 hours, recording $68.17 million.

-Cardano PRIME aims to increase eligible TVL to over $290 million within one year.

-Hoskinson stated that PRIME, RealFi, and Pogun could attract billions of dollars in funding.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*