ADA outperforms Solana as DeFi TVL approaches $700 million

• Cardano price settled at $1.20 on Wednesday, outperforming Solana and Ethereum with a gain of 109% since Gensler indicated his SEC exit on November 14.
• Cardano’s TVL increased by $373 million, signaling a 120% increase in demand for DeFi projects built on the blockchain in the last 20 days.
• Technical indicators point to further upside as bulls build stable support around the $1.20 area.

Cardano price remained stable above $1.20 on Wednesday. Recent on-chain inflows observed during Gensler’s impending exit suggests that the rally could continue towards $1.50 in the coming days.

Cardano has outperformed Solana and Ethereum since Gensler’s SEC exit confirmation

Cardano has closed at a higher price in 17 of the last 20 trading days, outperforming Solana and Ethereum while surpassing various key milestones.

First, ADA closed November 2024 up over 230%, making it its best performing month since August 2021.

Additionally, Cardano’s market cap surpassed $40 billion for the first time in three years when the price of ADA hit $1 on November 23rd.

Cardano price action | ADAUSDT (Binance)

Recent market reports show that Cardano’s ongoing price rally coincided with the expected exit of US Securities and Exchange Commission Chairman Gary Gensler.

Cardano price was trading at just $0.57 on November 14th when Gensler first hinted at his exit.

Since then, ADA has surged 110% to hit $1.20 at the time of writing on Wednesday, outperforming Solana and Ethereum.

Cardano TVL is nearing the $700 million milestone after a 120% increase in 20 days

At first glance, Cardano’s recent 110% price gains coincided with increased short-term demand for assets that were considered undervalued due to SEC litigation in recent years.

However, a closer look at key on-chain data trends suggests that the ADA price increase was supported by organic demand for projects hosted on the Cardano blockchain.

The following DeFilama chart confirms this representation and tracks real-time changes in the total value of assets locked in the Cardano DeFi ecosystem.

This provides clear insights into changes in network demand and user activity related to key market events.

Cardano Total Value Locked (TVL) | Source: DeFillama

The chart above shows that Cardano TVL was at $313 million on November 13th.

That number has skyrocketed 120% since then, reaching the $685 million range on Wednesday, up 120% since Gensler’s exit notice hit newsreels.

As more users stake assets and conduct DeFi transactions on the Cardano blockchain, demand for ADA increases in the form of transaction fees and gas.

This marks a long-term bullish outlook for Cardano’s price performance, driven by two key factors.

First, TVL’s 120% growth in the last 20 days exceeds AD’s 110% price increases.

This rare market dynamic suggests that the ongoing rally has been driven primarily by organic network demand rather than short-term speculative frenzy.

Secondly, the increase in TVL highlights the growing confidence in Cardano’s DeFi ecosystem, especially after the regulatory headwinds in the US following SEC Chairman Gary Gensler’s decision to step down.

Cardano Price Prediction: Breakout of $1.50 imminent if $1.20 support holds
With TVL growth currently outpacing price, Cardano price still has significant upside potential, which could develop into a further increase towards the $1.50 level in the near term.

Cardano price prediction | ADUSDT

Technical indicators on the ADAUSD daily chart also support this bullish ADA price prediction.

The widening Bollinger Bands signal increased buying momentum. If $1.20 holds, ADA bulls could aim for a quick move towards the upper Bollinger Band at $1.30, paving the way for a possible rebound to psychological resistance at $1. Pave $50.

Additionally, the Average Directional Index (ADX) rising above 60 signals that ADA is still in an uptrend.

However, if it fails to hold the $1.20 level, the focus could turn back to the $0.95 level as the next major support.