- Volume on Cardano’s DEX rose above $66 million in the last seven days.
- Charles Hoskinson suggested that the network could host Bitcoin Ordinals better.
Cardano [ADA] blockchain’s Decentralized Exchange (DEX) volume increased by 60.6% in the last seven days. Indeed, an encouraging development, as the spike indicated growing liquidity and trading activity within the Proof-of-Stake (PoS) ecosystem.
Bringing in more liquidity
According to DefiLlama, the soaring activity ensured that the volume reached $66.88 million within the aforementioned time frame. Over $7.94 million came in the last 24 hours alone.
Source: DefiLlama
While Cardano DEXes have seen a surge in trading, it’s important to note that they primarily facilitate the trading of tokens built under the blockchain.
Recently, several meme coins have been linked to the network, causing the trading volume of Minswap to reach $6.91 million.
Another Cardano-based DEX that benefited from increased exchange activity and contributed to the volume was Muesliswap, whose volume skyrocketed by 167%.
DEXes are just one of many Cardano-based projects that contribute to its Total Value Locked (TVL). But interestingly, lending protocols under the chain could also play their part. This led the project’s TVL to rise by 15.30% over the last week.
The TVL is a metric used to measure the total value of smart contracts assets staked on locked in a particular Defi platform.
Source: DefilLlama
When the TVL increases, it means that investors had developed more trust for the blockchain. And this was the case with Cardano, as the TVL increase improved the protocol’s health.
Hoskinson wants “better” for Ordinals
Despite the advancement, Charles Hoskinson, Cardano’s founder, did not seem satisfied with the current hosting infrastructure.
In a surprise Ask Me Anything (AMA) session on YouTube, he stressed that Bitcoin Ordinals would do much better on the Cardano ecosystem than where it was currently operating.
The digital artifacts which rose to prominence earlier this year have enjoyed an array of attention. According to Dune Analytics, the total number of Ordinals Inscription was on the verge of reaching 10 million.
Source: Dune Analytics
It is also noteworthy to mention that Bitcoin Ordinals also led to the introduction of the BRC-20 token standard. This caused transaction delays on the Bitcoin network. But that seems to be in the past as the market cap of these tokens dropped to $445.55 million.
If Cardano were to introduce such cross-chain capabilities in the future, it could potentially expand the range of assets that can be traded on its DEXs, including Bitcoin-based assets like the Bitcoin Ordinals.
However, any integration of Bitcoin-related functionality on Cardano would require significant technical development and community consensus.