Cardano and its native token, ADA, faced a significant decline in the second quarter of 2024, as reported by data intelligence firm Messari. The decline in ADA’s price by 39.7% to $0.39 and its market capitalization by 39.4% to $14 billion reflected the broader downturn in the cryptocurrency market. With a slight increase in circulating supply, ADA’s market cap ranking dropped from 9th to 10th place. Transaction fees on the Cardano network also experienced decreases in revenue and daily activities.
The revenue in USD decreased by 44.3% to $0.74 million, while the revenue measured in ADA fell by 28.0% to 1.60 million. The platform’s average daily transactions dropped by 27.5% to approximately 51,400, and the number of daily active addresses (DAAs) fell by 33.2% to 31,800. Although the average transaction fee in USD decreased by 23.1%, the average fee in ADA saw only a marginal decline of 0.6%.
Despite some slight increases in total ADA staked and the staking rate, the total value of staked ADA in USD decreased by 39.6% to $8.9 billion. Cardano’s treasury balance, measured in ADA, rose by 5.8% to 1.57 billion, while its dollar value decreased by 36.7% to $604.7 million. Decentralized application (DApp) activity on Cardano also saw declines, with average daily DApp transactions falling by 35.7% to 34,300.
The stablecoin market cap on the Cardano platform decreased by 12.4% to $19.6 million, and average daily non-fungible token (NFT) sales plummeted by 57.4% to under 730 transactions. Despite these challenges, new stablecoins like USDM and MyUSD saw significant market cap increases, hinting at a potential shift in the ecosystem. The overall decline in total value locked (TVL) on Cardano was attributed to the broader market downturn rather than Cardano-specific factors.
Amidst the challenges faced by Cardano in Q2 of 2024, the report highlights ongoing developments within the ecosystem. The emergence of new stablecoins and upcoming upgrades, such as the Chang Hard Fork, promise to increase Cardano’s governance capabilities. These developments aim to move the network closer to achieving its long-term goals of self-sustainability and participatory decision-making. Despite the current price of ADA trading at $0.34, there is a sense of optimism regarding the future of Cardano’s ecosystem.
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