Charles Hoskinson On How Cardano Could Have 3rd Largest DeFi TVL

Cardano Founder Says, Count Staked ADA

Cardano may not be considered a pioneer in the DeFi field, but it is at the top of the list when it comes to the networks with the highest percentages of staked supply. Cardano has already seen billions of dollars committed on the network, with more than 72 percent of the total supply invested. But why isn't this factored into official TVL figures?

Staking ADA on the Cardano network, unlike most smart contract platforms, does not require a user to lock their assets for any period of time. Simply, while ADA holders can earn incentives for their staked coins, they can also move them whenever they wish. This does not appear to qualify these staked coins to be tallied for calculating a network's TVL.

Cardano founder Charles Hoskinson highlighted this mismatch in a recent tweet, explaining that if the number of staked ADA were counted regardless of whether they were locked or not, Cardano's TVL would be substantially greater. According to Hoskinson, the network's TVL would be moreover $19 billion if this was done.

Cardano would be the third-largest platform in terms of TVL with a figure like this. According to data from DeFi Llama, the Binance Smart Chain currently holds the crown, with a TVL of $12.03 billion. However, because uncounted staked ADA remains unaccounted for, the TVL for Cardano on the same platform is a little over $200 million.

Nonetheless, advocates of the network appear unconcerned. Cardano continues to expand not only in terms of volume but also in terms of the number of new users joining the blockchain.

In the first quarter of 2022, approximately 3.2 million additional wallets were added, according to data. This was a 1,600 percent rise over the previous year. Swap trades on the network are also doing exceptionally well, with most DEX trades clearing in under a minute.