Digital investment firm Waves Financial has announced the launch of a new ADA yield fund to support fast-growing startups on Cardano’s DeFi platform start-ups.
The fund aims to provide liquidity and support new decentralized financial platform (DeFi) startups in the Cardano ecosystem, beginning with an initial $100 million. Wave Financial LLC (Wave) is a Los Angeles-based investment management firm that provides digital asset management solutions for institutional and retail investors.
According to a statement, the new fund will support the new decentralized exchanges, credit protocols and stablecoin issuers that are built on Cardano. Currently, more than 500 projects are built on Cardano.
Currently, seven DEXes contribute to Cardano’s TVL, which currently stands at $295.27 million, according to DefiLlama. Including hedged assets, the TVL is $404 million. MuesliSwap was the first decentralized exchange to launch on the mainnet in late December. SundaeSwap, the most anticipated Cardano project to date, launched in January. Currently, the top Cardano DEX has a modest total value of $102 million. Minswap, which launched in early March, remains the largest DEX, with a total value of $188 million.
Cardano sees institutional inflows
According to data from IntoTheBlock, ADA records an inflow of institutional funds to the network as on-chain transaction volume faced a 50-time increase in 2022.
@Cardano is experiencing increasing institutional demand
The volume of on-chain transactions >$100k has increased by 50x just in 2022
— IntoTheBlock (@intotheblock) March 29, 2022
In additional data provided by the on-chain analytics firm, the volume of large transactions exceeding $100,000 jumped by 50 times in 2022.
On March 28, a total of 69.09 billion ADA were moved in these large transactions, representing 99% of the total on-chain volume. With the release of new solutions on the chain, Cardano becomes more relevant for institutional investments that often look for real value behind the project rather than speculative returns.
The number of whales on the Cardano network has also increased by 1.7%, with roughly 42 addresses holding 1,000,000 to 10,000,000 ADA created since March 21. These whales reportedly hold between $1.2 million and $12 million in ADA, according to Santiment data.