Cardano Faces Challenges in Q3 2023
Cardano, a smart contract network launched in 2017, had a quiet Q3 2023 in the overall crypto market. However, it experienced challenges with a decline in ADA’s price and revenue. Despite these setbacks, Cardano showed growth in its treasury balance, stablecoin market cap, and Total Value Locked (TVL) ranking. The network’s infrastructure and connections to other ecosystems have paved the way for future developments in the decentralized finance (DeFi) sector.
Decrease in Daily Active Addresses and Transactions
According to a recent report by Messari, ADA’s price declined for the second consecutive quarter, down 9.5% QoQ to $0.25, in line with the overall crypto market’s 9.2% QoQ fall. The revenue generated from transaction fees also decreased by 29.9% QoQ.
Cardano’s Treasury balance grew by 7.2% QoQ to 1.39 billion ADA. Currently, 20% of transaction fees contribute to the treasury, providing a potential funding source for future projects.
The network experienced a decline in daily active addresses for the third consecutive quarter, down 28.9% QoQ to 41,100. Average daily transactions also decreased by 12.2% QoQ.
Average daily dapp transactions decreased by 14.7% QoQ but increased by 40.0% YTD. NFT transaction activity declined, while NFT trading volume increased.
Cardano’s TVL Remains Stable
Cardano’s TVL remained steady, declining only 0.1% QoQ. However, its TVL ranking improved from 21st to 15th during Q3, indicating relative growth compared to other ecosystems.
The launch of two new stablecoins, iUSD and DJED, contributed to the overall TVL growth, as the stablecoin market cap increased by 16.3% QoQ.
Cardano also made progress in interoperability and core infrastructure during Q3 through partnerships with networks like Wanchain and developments in state channels, on-chain governance, and sidechains.
Overall Assessment of Cardano’s Q3 2023
Cardano faced challenges with declining ADA price and revenue in Q3 2023. However, positive trends were seen in the treasury balance, stablecoin market cap, and TVL ranking. The network’s infrastructure developments and connections to other ecosystems position it favorably for future advancements in the DeFi sector.
Hot Take: ADA Price Soars By 17% In 30 Days
Despite declines in various indicators of Cardano’s ecosystem, ADA has experienced a significant surge of 17% in the past 30 days. Currently trading at $0.2983, ADA has been on an upward trend recovery over the past weeks following a sharp decline since July 13. However, looking at the one-year timeframe, ADA’s value has seen a decline of 26%.
Featured image from Shutterstock, chart from TradingView.com
By
By
By
By
By