Cardano Q4 2023 Report: TVL Growth And ADA Price Surge Outshine Competitors
February 14 2024 - 6:30PM
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Cardano (ADA) showcased remarkable progress during the fourth
quarter (Q4) of 2023, surpassing its competitors and demonstrating
impressive growth in key metrics, according to a Messari
report. Average Daily Transactions Soar In Q4 The report
highlights that ADA’s revenue in USD increased by 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. Furthermore, Cardano’s Treasury balance expanded by 2.6%
QoQ, reaching 1.43 billion ADA, in line with growth trends observed
in previous quarters. Currently, 20% of transaction fees contribute
to the treasury, which can be adjusted through governance. Related
Reading: These Developments Show That The Bitcoin Bullish Momentum
Is Far From Over Another key metric, transactions, shows that
Cardano experienced 10.9% QoQ growth in average daily transactions,
outpacing the 1.6% QoQ growth in daily active addresses. The ratio
of transactions to active addresses has steadily increased over the
past year, indicating increased power users. In Q4, the ratio
of transactions to active addresses increased 9.2% sequentially and
45.0% year-over-year (YoY), reflecting higher average activity per
user due to the introduction and development of various protocols
throughout 2023. In terms of stake, active stake declined by 0.5%
QoQ for the second consecutive quarter, amounting to 22.8 billion
ADA. Engaged stake also remained relatively flat in the second half
of 2023. However, active and engaged stake witnessed a YoY decrease
of 10.2% and 9.6%, respectively. Cardano TVL Reaches New Milestone
With the thawing of the crypto winter, the Cardano ecosystem
experienced a significant surge in Total Value Locked (TVL) in USD,
skyrocketing 166% QoQ and 693% YoY. Indigo emerged as the
largest protocol by TVL, surpassing Minswap. TVL of stablecoins on
Cardano increased by 37% QoQ and 673% YoY, with the addition of
Mehen’s USDM fiat-backed stablecoin scheduled to launch in March.
Notably, TVL in USD reached an all-time high of $449 million on
December 14th, representing the Q4 growth of 166%. This surge
contributed to Cardano’s rise in TVL rankings from 15th to 11th
during Q4, following its initial position of 34th at the beginning
of the year. TVL denominated in ADA also achieved an all-time high,
peaking at just over 700 million ADA. According to the report,
Cardano’s TVL growth was primarily driven by the introduction of
new stablecoins, namely iUSD and DJED, early in 2023. Stablecoins
remained a crucial indicator of decentralized finance (DeFi)
health, as the total value locked in stable assets rose by 36.8% to
$21.5 million. Cardano’s stablecoin market cap also improved from
54th to 32nd among other networks. However, non-fungible token
(NFT) activity declined during Q4. Transactions and trading volume
in the NFT space decreased by 8.0% and 33.8% QoQ, respectively.
Every year, NFT transactions and trading volume substantially
declined by 58.3% and 68.3%, respectively. The only metric to
show growth in 2023 was the number of unique sellers, which
increased by 213.2% YoY, averaging 270 unique sellers daily.
Related Reading: Breakout Confirmed: Shiba Inu Price Set For A
Possible 73% Surge Lastly, ADA’s price surged 127.2% QoQ,
outperforming the overall crypto market’s 53.8% increase. This Q4
surge contributed to ADA’s YoY change of 145.2%. As of now, ADA
continues to show significant gains with its current trading price
of $0.5724. This reflects a significant increase of 5.5% over the
past 24 hours and 8% over the past 30 days. These figures further
solidify the bullish momentum of the token as the market enters the
middle of the first quarter of 2024. Featured image from
Shutterstock, chart from TradingView.com
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