Cardano DeFi TVL Rises 14M ADA Amid Weak Institutional Activity

Cardano (ADA) has seen a notable increase in its decentralized finance (DeFi) total value locked (TVL), rising by 14 million ADA since August 8. The TVL grew from 351.5 million ADA to 365.73 million ADA, equivalent to approximately $66.65 million. This growth coincides with the network's Van Rossem upgrade on July 18, which aimed to enhance smart contract efficiency and prepare for the upcoming Leios upgrade.

Despite the rise in locked value, trading activity on Cardano's decentralized exchanges has declined. Volume dropped from $1.88 million on August 11 to $867,494. Additionally, the network's stablecoin supply increased from $63 million on August 1 to $67 million, indicating some stability in the ecosystem.

Institutional interest in Cardano remains subdued. CME recorded zero ADA futures volume on August 13, with open interest falling from 32.7 million ADA to 19.7 million ADA. Grayscale withdrew its Cardano Trust ETF application on August 10, further signaling weaker institutional demand.

Technically, ADA is testing the $0.18 support level, a former resistance in a double-bottom pattern. A break below this level could weaken the recovery case. The cryptocurrency reached $0.21 on August 6 before slipping back to $0.18 by August 14. The $0.15 area remains a key lower reference point, while $0.20 is the next major resistance if buyers continue to defend support.