Leading crypto market intelligence firm, Messari, has recently published its Q2 2023 report on Cardano (ADA), shedding light on the current state of the world’s eighth-largest cryptocurrency by market cap.
The report titled “State of Cardano Q2 2023” indicates a notable surge in decentralized application (DApp) transactions and total value locked (TVL), indicating increasing adoption and demand for DApps on the Cardano network. However, it also highlights a decline in ADA’s price, network activity, and staking metrics.
Here are the key points in the report:
- Increased Dapp Transactions: Average daily Dapp transactions witnessed a 49% increase compared to the previous quarter, with Minswap experiencing the most significant absolute growth, accompanied by contributions from new Dapp launches.
- Growing TVL: The total locked value (TVL) in dollars recorded a 9.7% increase compared to the previous quarter and an impressive 198.6% increase compared to the previous year. Throughout 2023, Cardano climbed from the 34th to the 21st position in the TVL rankings across all blockchain networks.
- Rising Transaction Fees: The average transaction fee rose 8.5% from the previous quarter, reaching $0.126 from $0.117. Despite this consecutive increase, the average transaction fee (in USD) remains 50.8% lower year-on-year due to declines in ADA price.
- Declining Address Activity: The number of daily active addresses experienced a 4% decrease in Q2, dropping from 60,200 to 57,800. This marks the fourth consecutive decline in address activity over the past five quarters.
- Steady Transaction Volume: Average daily transactions grew by 1.9% from the previous quarter, reaching 68,800 from 67,500 transactions.
- Increased Blockchain Load: Cardano’s average blockchain load rose from just under 40% in Q1 to over 50% in Q2. In May, the average daily load reached 81.2%, a level not seen since the beginning of 2022.
- ADA Price and Market Capitalization: ADA’s price and market capitalization experienced a decline after a 53.5% gain in the first quarter. Despite a 26.9% decrease from the previous quarter, ADA still gained 12.0% year-on-year. However, ADA’s performance in Q2 lagged behind the overall crypto market, which registered a marginal 0.1% increase.
- Treasury Balance Sheet: Cardano’s Treasury balance sheet increased by 8.5% in Q2, reaching 1.30 billion ADA. However, the value of the Treasury in USD decreased by 20.7% compared to the previous quarter, declining from $452 million to $358 million.
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Minswap, an important player in Cardano (ADA) decentralized finance (DeFi) sector, maintained its dominance in the liquidity space throughout the second quarter. It closed the second quarter with a TVL of $48.8 million and a dominant market share of 32.2%.
As Cardano continues to witness growth in DApp adoption and TVL, the price drop and declining network activity highlight areas for improvement. The insights provided by Messari’s report offer valuable perspectives on the current outlook for Cardano and its ecosystem as a whole.