Cardano (ADA) has exhibited remarkable progress during the fourth quarter (Q4) of 2023, surpassing its competitors and demonstrating impressive growth in key metrics, according to a report by Messari. This article will delve into the various aspects of Cardano’s success in Q4 and analyze the factors contributing to its continued upward trajectory.
One of the standout achievements for Cardano in Q4 was the significant increase in revenue. ADA’s revenue in USD rose by an impressive 66.7% quarter-over-quarter (QoQ), driven not only by ADA’s price action but also by a 10.6% QoQ increase in revenue denominated in ADA. This growth showcases the growing popularity and adoption of Cardano.
Additionally, Cardano’s Treasury balance expanded by 2.6% QoQ, reaching 1.43 billion ADA. This expansion aligns with the growth trends observed in previous quarters and highlights the overall financial stability of the project. Currently, 20% of transaction fees contribute to the treasury, which can be adjusted through governance, ensuring a sustainable funding mechanism for the Cardano ecosystem.
Transaction and User Growth
Cardano experienced robust growth in the number of daily transactions during Q4. Average daily transactions increased by 10.9% QoQ, outpacing the growth in daily active addresses, which only grew by 1.6% QoQ. The steady increase in the ratio of transactions to active addresses over the past year indicates a rise in power users utilizing the platform.
The ratio of transactions to active addresses saw a significant sequential increase of 9.2% in Q4, as well as a substantial year-over-year (YoY) increase of 45.0%. This upward trend signifies higher average activity per user, primarily due to the introduction and development of various protocols throughout 2023. The growing number of transactions and active users solidify Cardano’s position as an increasingly popular blockchain platform.
While active stake declined by 0.5% QoQ for the second consecutive quarter, Cardano’s stake ecosystem remained relatively stable in the second half of 2023. However, both active and engaged stake witnessed YoY decreases of 10.2% and 9.6%, respectively. Despite these decreases, the overall stake metrics indicate a sustainable stake ecosystem within Cardano.
The Cardano ecosystem experienced a significant surge in Total Value Locked (TVL) in USD, skyrocketing by 166% QoQ and an astonishing 693% YoY. Indigo emerged as the largest protocol by TVL, surpassing Minswap. The TVL of stablecoins on Cardano also witnessed substantial growth, increasing by 37% QoQ and a staggering 673% YoY. This surge in TVL reflects the growing confidence and usage of decentralized finance (DeFi) on the Cardano blockchain.
Stablecoins played a pivotal role in Cardano’s growth during Q4. The introduction of new stablecoins, such as iUSD and DJED, early in 2023 significantly contributed to Cardano’s TVL growth. Total value locked in stable assets rose by 36.8% to $21.5 million, while Cardano’s stablecoin market cap improved from 54th to 32nd among other networks. This traction signifies the importance of stablecoins as a crucial indicator of DeFi health.
However, the NFT sector experienced a decline in activity during Q4. NFT transactions and trading volume both decreased by 8.0% and 33.8% QoQ, respectively. Furthermore, NFT transactions and trading volume declined significantly by 58.3% and 68.3% YoY, respectively. The only metric to show growth in the NFT space was the number of unique sellers, which increased by an impressive 213.2% YoY.
ADA’s price surge during Q4 was another significant accomplishment for Cardano. ADA outperformed the overall crypto market with a surge of 127.2% QoQ, contributing to its remarkable YoY change of 145.2%. As of now, ADA continues to show substantial gains, with a current trading price of $0.5724, reflecting its continued bullish momentum in the market.
Cardano’s success during Q4 2023 is evident in its impressive growth across various key metrics. The increase in revenue, expansion of the Treasury balance, growth in transactions and users, and the surge in Total Value Locked all point towards a thriving ecosystem. Despite the decline in NFT activity, Cardano’s overall performance and ADA’s price surge further solidify its position as a leading blockchain platform. As Cardano enters the middle of the first quarter of 2024, the groundwork laid in Q4 sets the stage for continued growth and success.
Leave a Reply