Key Points:
- Cardano’s Q3 saw stagnant growth with a 29% decline in daily active addresses.
- Transaction counts fell by 12%, accompanied by a 21% drop in transaction fees.
- The NFT sector thrived, while developer activity surged, showing resilience amidst challenges.
Cardano’s Proof-of-Stake (PoS) Layer-1 network, known as ADA, faced a period of stagnant growth in the third quarter of the year, as highlighted in a recent report by Messari. During this three-month period, most key metrics either experienced a decline or remained relatively unchanged.
According to data from Messari, one of the significant challenges that Cardano encountered in Q3 was a decline in network usage. The average count of daily active addresses on the blockchain decreased to 41,137 between July and September, marking a 29% decrease from the 58,000 recorded during the second quarter of the year.
The decrease in user activity on the Cardano network also led to a drop in transaction counts during Q3. The Layer-1 network recorded an average daily transaction count of 60,356, which represented a 12% decrease from the 69,000 transactions recorded between April and June.
Furthermore, the average transaction fees paid by Cardano users to complete transactions on the network also saw a decline. Messari reported that the average transaction fee in US Dollars dropped by 21%, going from $0.13 to $0.10 during the third quarter. Similarly, transaction fees denominated in the network’s native token, ADA, decreased by 3% quarter-over-quarter (QoQ).
As a result of these challenges, Cardano’s revenue experienced a significant decline, falling by 30% in Q3, as reported by Messari.
On a more positive note, Cardano’s decentralized finance (DeFi) sector managed to maintain a steady total value locked (TVL), with a marginal 0.1% decline QoQ. Additionally, Cardano’s TVL ranking among all networks improved from 21st to 15th during the third quarter, signifying relative growth compared to other ecosystems. This growth occurred despite ADA’s nearly 10% QoQ price decline.
Notably, while decentralized applications (dApps) within the Cardano ecosystem witnessed a 15% decrease in average transaction counts, the platform’s NFT (Non-Fungible Token) sector experienced a surge in trading volume, with a nearly 20% increase during the quarter. Between July and September, Cardano recorded an average daily NFT trading volume of $600,000.
Despite the challenges faced by Cardano in Q3, there is some respite in the fact that the network led other blockchain platforms in terms of Developer Activity during the past month. This metric reflects Cardano’s commitment to creating a functional product and shipping new features. Cardano’s Developer Activity, measured through GitHub events, reached a total of 505 in the last 30 days, demonstrating its dedication to ongoing development and reducing the likelihood of being associated with an exit scam.
⚡️Top #Crypto Projects by Developer Activity in October
30 October 2023 #Cardano – 505#Polkadot – 427#Hedera – 380#Aptos – 340#Chainlink – 300#Cosmos – 287#IOTA – 272#Avalanche – 250#MultiversX – 138#Radix – 127Data source: @Santimentfeed$ADA #ADA $DOT #DOT $HBAR… pic.twitter.com/NlZnMRCAyA
— 🇺🇦 CryptoDep #StandWithUkraine 🇺🇦 (@Crypto_Dep) October 30, 2023
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Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.
