Cardano and its native token, ADA, faced a significant decline in the second quarter of 2024, mirroring the broader downturn in the cryptocurrency market. The report by Messari highlighted key performance indicators showing substantial decreases in various metrics. ADA’s price dropped by 39.7% to $0.39, and its market capitalization fell by 39.4% quarter-over-quarter to $14 billion. This decline was partly influenced by an increase in circulating supply, resulting in a drop in market cap rankings from 9th to 10th place.
Transaction fees on the Cardano network, crucial for processing transactions and covering storage costs, also suffered. Revenue in USD decreased by 44.3% to $0.74 million, and revenue measured in ADA fell by 28.0% to 1.60 million. The platform’s average daily transactions decreased by 27.5% to approximately 51,400, and the number of daily active addresses fell by 33.2% to 31,800. Additionally, the average transaction fee in USD dropped by 23.1%, while the average fee in ADA saw a marginal decline of only 0.6%.
Staking Metrics and Decentralized Applications
In terms of staking metrics, total ADA staked and the staking rate increased slightly. However, the total value of staked ADA in USD decreased significantly by 39.6% to $8.9 billion, primarily due to the falling price of ADA. Cardano’s treasury balance, measured in ADA, rose by 5.8% quarter-over-quarter to 1.57 billion, while its dollar value decreased by 36.7% to $604.7 million. Decentralized application (DApp) activity on Cardano saw declines, with average daily DApp transactions falling 35.7% to 34,300 and average daily decentralized exchange volume in USD decreasing by 42.5% to $4.2 million.
Despite these setbacks, the report highlighted ongoing developments within Cardano’s ecosystem. The emergence of new stablecoins like USDM and MyUSD saw their market caps rise dramatically, indicating a shift in the landscape. Additionally, upcoming upgrades such as the Chang Hard Fork promise to enhance Cardano’s governance capabilities, moving the network closer to achieving its long-term goals of self-sustainability and participatory decision-making. At the time of writing, ADA was trading at $0.34, down 0.7% for the 24-hour period.
Overall, the decline of Cardano in the second quarter of 2024 reflects the challenges faced by the cryptocurrency market as a whole. While there were notable decreases in key performance indicators, ongoing developments and upgrades within Cardano’s ecosystem suggest potential for recovery and growth in the future. It will be essential for the platform to address the issues highlighted in the report and continue to innovate to regain its position in the market.
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