Cardano and its native token, ADA, did not have a great Q2 in 2024. The price of ADA plummeted by 39.7% to $0.39, causing its market capitalization to fall by 39.4% to $14 billion. This decline was mainly influenced by an increase in circulating supply. It’s worrying to see such significant decreases in key performance indicators, especially when compared to the overall cryptocurrency market.
Transaction fees on the Cardano network also suffered during this period. Revenue in USD decreased by 44.3% to $0.74 million, while revenue measured in ADA fell by 28.0% to 1.60 million. The average daily transactions on the platform decreased by 27.5% to approximately 51,400, and the number of daily active addresses fell by 33.2% to 31,800. These numbers are concerning and indicate a lack of network activity and engagement.
In terms of staking metrics, total ADA staked and the staking rate saw slight increases. However, the total value of staked ADA in USD decreased significantly by 39.6% to $8.9 billion due to the falling price of ADA. Cardano’s treasury balance in ADA rose by 5.8% to 1.57 billion, but its dollar value decreased by 36.7% to $604.7 million. These numbers suggest instability and uncertainty within the staking ecosystem.
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. These figures show a significant decrease in user activity and engagement with decentralized applications on the platform.
Despite facing challenges, there are ongoing developments within Cardano’s ecosystem. New stablecoins like USDM and MyUSD saw their market caps rise dramatically, indicating a potential shift in the platform’s landscape. 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. These developments may present opportunities for growth and recovery in the future.
Cardano’s performance in Q2 2024 was disappointing, with significant declines in various metrics. The platform experienced a decrease in price, market capitalization, transaction fees, network activity, staking metrics, and decentralized application usage. While there are ongoing developments and upgrades within Cardano’s ecosystem, the platform still faces challenges in maintaining user engagement and market competitiveness. It will be crucial for Cardano to address these issues and implement effective strategies to bounce back from the setbacks experienced in Q2.
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