Cardano (ADA) has demonstrated remarkable progress and growth during the fourth quarter (Q4) of 2023, surpassing its competitors in key metrics, according to a recent Messari report. This article will provide a comprehensive analysis of Cardano’s performance during this period, examining various metrics that highlight its growth and highlighting the impact these achievements have had on the cryptocurrency ecosystem.
Cardano’s revenue in USD experienced a significant increase of 66.7% quarter-over-quarter (QoQ) in Q4 2023. This growth was driven not just by ADA’s price action but also by a 10.6% QoQ increase in revenue denominated in ADA. Moreover, Cardano’s Treasury balance expanded by 2.6% QoQ, reaching 1.43 billion ADA. This upward trend aligns with the growth observed in previous quarters and signifies the platform’s financial stability and potential for further development.
Cardano experienced impressive growth in transaction metrics during Q4. Average daily transactions increased by 10.9% QoQ, while daily active addresses only grew by 1.6% QoQ. The rising ratio of transactions to active addresses over the past year indicates the emergence of power users on the Cardano platform. In Q4 alone, this ratio increased by 9.2% sequentially and 45.0% year-over-year (YoY), highlighting the increased activity per user due to the introduction and development of various protocols throughout 2023.
Despite a slight decline in active stake by 0.5% QoQ for the second consecutive quarter, Cardano’s active stake amounted to 22.8 billion ADA. Engaged stake remained relatively flat in the latter half of 2023. However, both active and engaging stake witnessed a YoY decrease of 10.2% and 9.6%, respectively.
The Cardano ecosystem experienced a significant surge in Total Value Locked (TVL) in USD, skyrocketing by 166% QoQ and 693% YoY. Indigo emerged as the largest protocol by TVL, surpassing Minswap. Additionally, TVL of stablecoins on Cardano increased by 37% QoQ and 673% YoY, with the forthcoming launch of Mehen’s USDM fiat-backed stablecoin in March. The surge in TVL led to Cardano’s rise in TVL rankings from 15th to 11th during Q4, from 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.
Stablecoins remained a crucial indicator of decentralized finance (DeFi) health on Cardano, 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, and by 58.3% and 68.3% YoY, signaling a significant decline in overall NFT activity. 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.
ADA’s price experienced a significant surge of 127.2% QoQ, outperforming the overall crypto market’s 53.8% increase in Q4. This contributed to ADA’s YoY change of 145.2%. Currently, ADA continues to exhibit significant gains, with a trading price of $0.5724. Over the past 24 hours, ADA has increased by 5.5%, and over the past 30 days, it has risen by 8%, indicating strong bullish momentum for the token as the market enters the middle of the first quarter of 2024.
Cardano’s Q4 2023 performance showcased remarkable growth and progress in key metrics, positioning it as a leading player in the cryptocurrency ecosystem. The substantial increase in revenue, treasury balance, and transaction metrics, along with the surge in Total Value Locked and market cap of stablecoins, demonstrate Cardano’s potential for further growth and development. Although NFT activity witnessed a decline, it is worth noting that the number of unique sellers increased significantly. Additionally, ADA’s impressive price surge solidifies its bullish momentum, making it an intriguing asset to watch in the coming months.
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