Cardano (ADA), the popular blockchain platform, has defied lackluster market conditions during Q2, showcasing promising signs of growth, as revealed in a new report by Messari, a leading blockchain intelligence platform. The report, titled ‘State of Cardano’ for the second quarter, highlighted the positive impact of emerging infrastructure, stablecoins, programming languages, and wallets on the platform’s development.
Rising Average Transactions and User Engagement
Despite a drawdown in ADA’s price and market cap, the Cardano ecosystem witnessed encouraging growth. The average transaction value experienced an 8.5% increase, rising from $0.117 to $0.126, in comparison to the previous quarter. However, the report noted that the average transaction fee in USD remained 50.8% lower year over year, primarily due to ADA’s price decline compared to the previous year.
During Q2, transaction activity surged, with average daily transactions rising by approximately 2% quarter-on-quarter, reaching 68,800 from 67,500. Messari experts highlighted the significance of this growth, as it indicates heightened user engagement. Interestingly, the ratio of transactions to active addresses increased consistently over the last five quarters, signifying even more user participation compared to earlier periods. The Transaction / Active Address ratio reached 1.19 in Q2, marking a sequential rise of 6.1% and a year-over-year surge of 13.2%.
Cardano’s Dapp Usage and TVL Growth
The second quarter showcased another noteworthy achievement for Cardano, with its average daily dapp transactions experiencing an impressive 49.0% surge compared to the previous quarter, maintaining an average of 57,900 daily transactions. Furthermore, the total value locked (TVL) on Cardano saw a substantial 9.7% quarter-over-quarter rise, reaching $151.7 million.
What makes this TVL growth remarkable is that it occurred despite ADA’s price decrease. Additionally, Cardano’s year-to-date TVL soared by a staggering 198.6% in USD, propelling the platform from the 34th to the 21st position among all networks in 2023.
Minswap Emerges as the Liquidity King
The report also shed light on Minswap, an automated market maker (AMM), which has solidified its position as the liquidity king of Cardano’s DeFi ecosystem. Minswap ended Q2 with an impressive TVL of nearly $50 million and over 32% dominance on the platform.
Stablecoin Infrastructure Boosts Cardano’s Market Cap
Data presented in the report indicated that Cardano’s stablecoin market cap witnessed a significant climb, jumping from the 54th to the 37th position in 2023. The stablecoin infrastructure emerged as yet another factor fueling the TVL growth on the blockchain during the second quarter.
The Messari report on the ‘State of Cardano’ for Q2 brings a ray of optimism amid challenging market conditions. The platform’s diverse ecosystem, coupled with emerging infrastructure and increased user engagement, has contributed significantly to its growth and positioning among leading networks. As Cardano continues to evolve, it remains an interesting space to watch in the ever-changing world of blockchain technology.