Cryptocurrency analysis company Messari has released its second quarter 2023 report on Cardano (ADA), the world's sixth largest cryptocurrency when stablecoins are excluded.
According to the report, Cardano saw a significant increase in dapp transactions and locked-in total value (TVL) in Q2, which points to the increasing demand and adoption of decentralized apps on the platform.
However, the report also reveals that Cardano's native token, ADA, has experienced a price drop, and a decrease in network activity and staking metrics.
Some of the key findings in the report are:
- Average daily dapp transactions increased by 49% compared to the previous quarter. The biggest absolute growth was in Minswap, but a few new dapps also contributed to the overall increase.
- Total locked value (TVL) in dollars increased by 9.7% compared to the previous quarter and by 198.6% compared to last year. Cardano climbed from 34th to 21st place in the TVL rankings across all chains throughout 2023.
- The average transaction fee rose 8.5% from the previous quarter to $0.126 from $0.117. Despite the increase in consecutive quarters, the average transaction fee (USD) is still down 50.8% year-on-year due to lower ADA prices.
- The number of daily active addresses also decreased in the 2nd quarter and decreased from 60,200 to 57,800, down 4.0% compared to the previous quarter. This marks the fourth-quarter decline in address activity over the past five quarters.
- Average daily transactions increased by 1.9% from the previous quarter to 68,800 from 67,500.
- Cardano's average blockchain load increased from just under 40% in Q1 to over 50% in Q2. Average daily load in the second quarter reached 81.2% in May, a level not seen since the beginning of 2022.
- ADA's price and market capitalization declined after gaining 53.5% in the first quarter. Despite a 26.9% decrease from the previous quarter, ADA was up 12.0% year-on-year. ADA's retreat in Q2 caused it to lag behind the overall crypto market, which was up 0.1% QoQ.
- Cardano's Treasury balance sheet increased 8.5% in Q2 to reach ADA 1.30 billion. The value of the Treasury in USD decreased by 20.7% compared to the previous quarter, from 452 million dollars to 358 million dollars.
- Minswap remains the liquidity king of Cardano DeFi, closing the second quarter with a TVL of 48.8 million USD and a dominance of 32.2%.
*Not investment advice.
