Lending applications built on the Cardano blockchain, Liqwid and Lenfi, record unprecedented growth, surging an impressive 300% to reach new highs.
Cardano's DeFi Lending Sector Experiences Steady Growth
Cardano's decentralized finance (DeFi) sector is showing signs of steady growth, particularly in the lending applications sector. This growth is evident in the performance of two leading lending apps, Liqwid Finance and Lenfi.
Liqwid Finance, the leading DeFi app on Cardano, has witnessed a remarkable 141% quarter-over-quarter growth in total value locked (TVL), reaching around $113.6 million by late 2024. This growth indicates a maturing ecosystem focused on yield generation, borrowing, and collateralization, rather than mere speculation.
Meanwhile, Lenfi, another top lending app on Cardano, has seen its TVL soar by over 300% in the past month, reaching a record high of $60 million on November 24. The most deposited token on Lenfi is SNEK, Cardano's largest meme coin by market cap, with a TVL of $36 million.
The growth of TVL in these DeFi apps on Cardano is a clear indication of a growing interest and adoption of decentralized finance on the Cardano network. This growth may be attributed to the recent price increase in ADA, Cardano's native cryptocurrency, which has reached its highest level since April 2022.
On Liqwid, ADA accounts for 48% of total collateral value, followed by the native LQ token with 47%. On Lenfi, ADA is the second most deposited token, with a TVL of $5.8 million. The native LENFI token has a TVL of $5.7 million on Lenfi.
Recent developments on Cardano may also be contributing to the increased interest in its DeFi apps. The positive sentiments about Cardano's regulatory framework discussions with US lawmakers may have played a role in the growth of these DeFi apps on Cardano.
Newer lending protocols such as Mutuum Finance (MUTM) are also gaining attention for their innovative, capital-efficient designs and non-custodial structures. This trend suggests a move towards more user-friendly, real-world asset-integrated DeFi solutions on Cardano.
Despite these on-chain growth indicators, Cardano’s native token ADA has experienced price volatility and disconnect from DeFi growth metrics. This contrast between rising TVL in protocols like Liqwid and Mutuum and the price performance of ADA highlights the developing nature of Cardano’s DeFi lending sector.
In summary, the DeFi activity on Cardano through 2025 reflects significant growth in lending apps, a maturing ecosystem, emerging platforms, continued ecosystem development, and market valuation and user engagement dynamics lagging behind on-chain DeFi usage growth. This paints a picture of a cautiously optimistic growth phase in Cardano’s DeFi lending arena, with Liqwid and Lenfi central to current activity but the ecosystem still evolving rapidly.
Investors focusing on daily finance and technology news might find interest in the steadily growing Cardano DeFi sector, particularly in the lending applications sector. Daily news could highlight the remarkable growth of Liqwid Finance, with a 141% quarter-over-quarter increase in total value locked (TVL), or the impressive 300% surge Lenfi experienced in the past month. These developments underscore the growing interest and adoption of decentralized finance (DeFi) on the Cardano network.
