Minswap, a decentralized exchange (DEX) operating on the Cardano ($ADA) blockchain has recently experienced a record-breaking day of trading volume, reaching an all-time high volume of 54.98 million ADA, equivalent to approximately $20.93 million.
The volume, according to the cryptocurrency exchange, accounted for a little over 90% of all the trading volume among decentralized exchanges operating on the Cardano blockchain. Minswap’s surge is part of a broader trend in the Cardano ecosystem, which has been seeing growth in its decentralized finance (DeFi) protocols.
Data from DeFiLlama shows that the Total Value Locked (TVL) in the Cardano DeFi ecosystem has grown from $50.9 million at the start of 2023 to $172.81 million, representing year-to-date growth of 239%.
As the largest application on Cardano by locked value, Minswap holds 37% of over $170 million worth of tokens held on the network. The recent spike in transaction volumes on the exchange is largely attributed to traders seeking profit opportunities, particularly on meme coins such as Snek ($SNEK) and Bank ($BANK).
The trading volumes of these meme coins surged significantly, with a cumulative $40 million traded on Minswap alone. Such activity has bolstered the prices of Minswap’s $MIN tokens, which accrue value from platform usage and are also used as a governance token.
Meanwhile, Cardano’s native token, ADA, has been pushing its bullish agenda, even as a significant 71% of addresses on the network are currently underwater on their holdings in the smart contract platform’s native token, meaning the value they acquired the tokens for is above current market prices.
Charles Hoskinson, the Co-Founder and CEO of IO Global (IOG), recently shared a comprehensive overview of Cardano’s ongoing development and future roadmap. Cardano, a leading blockchain platform for smart contracts, continues to make significant strides in its evolution, as outlined by Hoskinson.
With these developments, the Cardano ecosystem has achieved remarkable results that have boosted its market position. The surge in TVL and the success of Minswap suggest growing confidence in Cardano’s ecosystem.
Featured Image via Unsplash