- Cardano and Bitcoin are vying for the top spot in DeFi TVL rankings.
- Cardano recently surpassed Bitcoin but for a short time.
- Cardano is lagging behind Bitcoin and struggling to beat it, given the ongoing Ordinals and BRC-20 craze.
Cardano The exceptional growth this year has made it a formidable competitor, challenging its ilk bitcoin And Ethereum. The Proof-of-Stake Network has its sights set on the top, due to ADA TVL’s record-breaking increase. DeFi TVL and new scalability protocols.
However, the path to overtaking Ethereum, given DeFi giant metrics, is still a daunting task. Making things even more difficult is the current era of Bitcoin, which is fueled by the craze around BRC-20 and arrangement.
The looming question: Will Cardano take Bitcoin’s supremacy, or will it fade away?
Cardano and Bitcoin race to the top
In a captivating run, Cardano has made an impressive climb in the DeFi TVL ratings, Claiming the sixteenth position with a total closed value (TVL) of $183.16 million on May 17. The POS chain showed its growing strength by outperforming competitors like Bitcoin with a TVL of $182 million.
Cardano community They were initially pleased to see the climb up the world rankings, but their excitement was short-lived as their hopes of reclaiming the top 10 waned. After losing $30 million in TVL, Cardano dropped to the 18th spot, allowing Bitcoin to overtake and secure the 14th spot, along with the rise of Fusion, Osmosis, and Klayton.
while experts Highlighting new dApps on the network yet to launch, Cardano’s TVL is mostly ADA denominated, which is still crippled by 90% of its all-time high. This could be the reason why Cardano has fallen in the global rankings since the ADA fell by 5% to 0.36 on May 18. In contrast, Bitcoin saw only a 2% drop in value to $26,746, according to CoinMarketCap data.
However, both networks have grown exponentially over the past year, showing increasing determination in their travels.
Cardano and Bitcoin DeFi performance comparison
Cardano’s DeFi TVL It has grown steadily since the beginning of the year. Recently, the total value booked on the ADA hit a new high of $504 million on May 14. Given this data, some users are suggesting that Cardano can comfortably secure the eighth position according to DeFiLlama Metrics.
Notably, Cardano has made significant progress on its development roadmap this year, including the launch of The highly anticipated Layer 2 scaling solutionHydra, aims to expand the network’s DApp ecosystem.
However, it may take some time for the protocol to show effect, since there are only 20 DeFi protocols on the network, one of which is Very stable protocolreleased earlier this year.
Many members of the community, incl Charles HoskinsonCardano considered getting ahead of Bitcoin with the release of Hydra. However, the network still faces challenges in overtaking Bitcoin, which is currently experiencing high network activity driven by Ordinal and Madness BRC-20.
Cardano’s struggle to overtake Bitcoin can be attributed to the relatively low number of active users on the point-of-sale chain, which is 16 times less than Bitcoin. according to DeFiLlamaBitcoin has more than 800,000 users across the seven DeFi protocols, while Cardano has 49,680 users across the 20 protocols.
It is important to note that the Lightning Network in Bitcoin is considered a DeFi protocol, and here is why Data aggregator reports High number of active users.
While both networks continue their race to the top, there is still quite a bit of ground left to cover in overtaking Ethereum, which currently boasts $26 billion in TVL across 789 protocols, setting a high ceiling for Cardano and Bitcoin alike.
on the flip side
Why is this important
Cardano and Bitcoin are on a very positive trajectory, given the development and activity of the network. The data shows that both networks are in a tight race to the top, which is very good for space, given the expanse of a race They turn up.
Read more about Illuvium’s major update:
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Read more about the Cardano Hydra protocol:
How Cardano’s Hydra Layer-2 Challenges Bitcoin Lightning and Ethereum Sharding Network