Cardano News Today: Cardano's TVL Soars 28.7% as Transaction Volume Slumps, Sparking Sustainability Doubts

Cardano (ADA) has emerged as a standout performer in the decentralized finance (DeFi) sector, with total value locked (TVL) surging 28.7% in Q3 2025 to a three-year high of $423.5 million. This resurgence has propelled ADA's market capitalization to $29.5 billion, a 42.5% increase, driven by robust growth in key protocols like Liqwid and Minswap. Liqwid's TVL alone jumped 50.8% to $101.6 million, while Minswap dominated 74.7% of decentralized exchange (DEX) volume on the network.

The momentum has been bolstered by whale activity, with large holders accumulating 348 million ADA tokens - worth over $204 million - between November 7 and 10. This buying spree has pushed ADA's price 21% higher from its $0.49 monthly low, sparking optimism among analysts who cite a potential "Power of Three" bullish pattern that could drive the price toward $0.73. However, the rally has not translated into broader network activity, as daily active addresses have softened, highlighting a divergence between institutional confidence and retail participation.

Cardano's governance structure has also evolved, with the completion of its first fully community-elected Constitutional Committee in September 2025. This marks a pivotal step in decentralizing decision-making, removing major institutional stakeholders like Input Output Global (IOG) from governance roles. The transition aligns with the Voltaire phase of Cardano's roadmap, which prioritizes ADA holder empowerment and ecosystem resilience.

Despite these advancements, challenges loom. While TVL and market cap figures are robust, transaction volume has shown signs of contraction, with daily application transactions declining 14.7%. This softness raises questions about the sustainability of growth, particularly as the network's treasury balance - though up 24.7% to $1.3 billion - has fallen 10.9% in ADA terms. Analysts caution that without continued adoption of native protocols, the ecosystem could face volatility, especially if broader market conditions deteriorate.

The Cardano Foundation has outlined an aggressive roadmap to address these concerns, including injecting liquidity into stablecoin projects and expanding real-world asset (RWA) tokenization. Additionally, upgrades like Halo2-Plutus which enable on-chain zero-knowledge proofs, aim to enhance privacy and scalability for developers. These initiatives underscore Cardano's bid to solidify its position in the DeFi landscape, but their success will hinge on user adoption and macroeconomic stability.