Cardano, a popular cryptocurrency platform, experienced a significant decline in the second quarter of 2024, according to a report by data intelligence firm Messari. The native token of Cardano, ADA, saw a notable drop in various key performance indicators during this period, reflecting the broader downturn in the cryptocurrency market.
ADA’s price plummeted by 39.7% to $0.39, while its market capitalization fell by 39.4% quarter-over-quarter to $14 billion. This decline was influenced by a slight increase in circulating supply, leading to a decrease in market cap figures. Consequently, ADA’s market cap ranking dropped from 9th to 10th place.
Transaction fees on the Cardano network, essential for processing transactions, also suffered a decline. Revenue in USD decreased by 44.3% to $0.74 million, while revenue in ADA fell by 28.0% to 1.60 million. The platform’s average daily transactions decreased by 27.5% to approximately 51,400, and the number of daily active addresses fell by 33.2% to 31,800.
In terms of staking metrics, total ADA staked and the staking rate increased slightly, but the total value of staked ADA in USD decreased significantly by 39.6% to $8.9 billion. Cardano’s treasury balance, measured in ADA, rose by 5.8% to 1.57 billion, although its dollar value decreased by 36.7% to $604.7 million.
Decentralized application (DApp) activity on Cardano saw declines, with average daily DApp transactions falling by 35.7% to 34,300. The average daily decentralized exchange (DEX) volume in USD also decreased by 42.5% to $4.2 million. Total value locked (TVL) on Cardano dropped by 41.2% to $219 million, following a peak of $506 million in March 2024.
Moreover, the stablecoin market cap on the platform decreased by 12.4% to $19.6 million in the second quarter of 2024. Average daily non-fungible token (NFT) sales also experienced a significant decline, plummeting by 57.4% to under 730 transactions.
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 aim to increase Cardano’s governance capabilities, bringing the network closer to its long-term goals of self-sustainability and participatory decision-making.
Cardano faced a tough second quarter in 2024, with various metrics showing significant declines. However, with promising developments on the horizon, including upgrades and new stablecoins, there is hope for a brighter future for the platform and its native token ADA. At the time of writing, ADA was trading at $0.34, down 0.7% for the 24-hour period.
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