Cardano (ADA) Q2 Digest: Major Double-Digit Decrease Across Four Vital Metrics
27 Agosto 2024 - 10:00PM
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According to a recent report by data intelligence firm Messari,
Cardano and its native token, ADA, experienced a notable decline in
the second quarter (Q2) of 2024, reflecting the broader downturn
affecting the cryptocurrency market. Key performance indicators
also showed significant decreases in various metrics. Price Plunge,
Market Cap Dips To $14 Billion According to the report, ADA’s price
plummeted 39.7% to $0.39, while its market capitalization fell by
39.4% quarter-over-quarter (QoQ) to $14 billion. Messari
noted that this decline was influenced by a slight increase in
circulating supply, which accounted for the minor discrepancy in
market cap figures. Consequently, ADA’s market cap ranking dropped
from 9th to 10th place. Related Reading: Toncoin (TON) Price
Performance 5 Days Post-Durov Arrest: What’s Next? Transaction fees
on the Cardano network, which are essential for processing
transactions and covering storage costs, also suffered. Revenue in
USD decreased by 44.3% QoQ to $0.74 million, while revenue measured
in ADA fell by 28.0% to 1.60 million. The platform’s average
daily transactions also decreased by 27.5% QoQ to approximately
51,400, and the number of daily active addresses (DAAs) fell by
33.2% to 31,800. Additionally, the average transaction fee in
USD dropped 23.1%, from $0.21 to $0.16. However, the average fee in
ADA saw only a marginal decline of 0.6%, remaining at 0.34.
Treasury Balance Grows Despite these setbacks, the ratio of
transactions to active addresses increased by 8.4% QoQ to 1.62,
suggesting a rise in “power users” engaging more frequently with
the platform. In terms of staking metrics, total ADA staked
and the staking rate increased slightly, although 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 5.8% QoQ to 1.57 billion,
although its dollar value decreased by 36.7% to $604.7 million.
Currently, 20% of transaction fees are allocated to the treasury.
Decentralized application (DApp) activity on Cardano also saw
declines, with average daily DApp transactions falling 35.7% QoQ to
34,300 and average daily decentralized exchange (DEX) volume in USD
decreasing by 42.5% to $4.2 million. Cardano TVL Drop Amid
Market Downturn Total value locked (TVL) on Cardano dropped 41.2%
QoQ to $219 million, following a peak of $506 million in March
2024, driven by a broader crypto market downturn rather than
Cardano-specific factors. Moreover, for the first time since
the introduction of Cardano’s stablecoins in late 2022, the
stablecoin market cap on the platform decreased by 12.4% QoQ to
$19.6 million. Average daily non-fungible token (NFT) sales also
took a hit, plummeting 57.4% QoQ to under 730 transactions. Related
Reading: Dogecoin Set For A Drop: Bearish Forces Eye $0.0914 Target
Despite these challenges, the report highlights 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 increase 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. Featured image from DALL-E, chart from TradingView.com
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