Cardano (ADA) exhibited exceptional growth and outperformed its competitors during the fourth quarter (Q4) of 2023, showcasing remarkable progress across various key metrics. According to a recent report by Messari, ADA experienced significant increases in revenue, treasury balance, transactions, and Total Value Locked (TVL) in USD. Additionally, ADA’s price demonstrated significant gains, further solidifying its bullish momentum in the market.
ADA’s revenue in USD saw a substantial increase of 66.7% quarter-over-quarter (QoQ), driven not only by the price action of ADA but also by a 10.6% QoQ surge in revenue denominated in ADA. This revenue growth demonstrates the increasing demand and adoption of Cardano’s ecosystem.
Cardano’s Treasury balance also experienced growth, expanding by 2.6% QoQ to reach 1.43 billion ADA. This expansion aligns with the growth trends observed in previous quarters and highlights the consistent development and sustainability of the Cardano ecosystem. Currently, 20% of transaction fees contribute to the treasury, which can be adjusted through governance, ensuring the continuous funding of projects and initiatives within the ecosystem.
Cardano witnessed a robust growth of 10.9% QoQ in average daily transactions, surpassing the 1.6% QoQ growth in daily active addresses. The ratio of transactions to active addresses has steadily increased over the past year, indicating a rise in power users within the Cardano community. In Q4, this ratio increased by 9.2% sequentially and 45.0% year-over-year (YoY), reflecting higher average activity per user due to the introduction and development of various protocols throughout 2023.
Despite a minor decline of 0.5% QoQ in active stake, Cardano’s active stake amounted to 22.8 billion ADA, showcasing a consistent level of participation within the network. Engaged stake remained relatively flat in the second half of 2023, with both active and engaged stake witnessing 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 an astonishing 693% YoY. Indigo emerged as the largest protocol by TVL, surpassing Minswap. Moreover, TVL of stablecoins on Cardano witnessed a growth of 37% QoQ and an impressive 673% YoY. The addition of Mehen’s USDM fiat-backed stablecoin, scheduled to launch in March, further enhances the stability and diversity of Cardano’s ecosystem.
Stablecoins remained a crucial indicator of decentralized finance (DeFi) health within the Cardano ecosystem. As the total value locked in stable assets rose by 36.8% to $21.5 million, Cardano’s stablecoin market cap improved from 54th to 32nd among other networks.
However, non-fungible token (NFT) activity experienced a decline during Q4. Transactions and trading volume in the NFT space decreased by 8.0% and 33.8% QoQ, respectively. This decline in NFT activity was consistent with the yearly trend, with transactions and trading volume substantially declining by 58.3% and 68.3%, respectively. The only metric to demonstrate growth in 2023 was the number of unique sellers, which increased by 213.2% YoY, averaging 270 unique sellers daily.
ADA’s price witnessed a remarkable surge of 127.2% QoQ, outperforming the overall crypto market’s 53.8% increase during Q4. This surge in price contributed to ADA’s YoY change of 145.2%. Currently, ADA continues to exhibit significant gains, with a trading price of $0.5724.
Cardano’s Q4 performance showcases its outstanding progress, surpassing competitors and demonstrating growth across various metrics. The substantial revenue increase, expanding treasury balance, rising transaction activity, and significant surge in TVL and price contribute to ADA’s bullish momentum and solidify Cardano’s position in the market. As the ecosystem continues to evolve and introduce new protocols and stablecoins, Cardano’s future prospects remain promising. However, it is essential for investors to conduct their own research and exercise caution when making investment decisions, as investing in cryptocurrencies carries inherent risks.