In the second quarter of 2024, Cardano and its native token, ADA, faced significant challenges, as highlighted in a recent report by data intelligence firm Messari. The report indicated a notable decline in various metrics, reflecting the broader downturn affecting the cryptocurrency market. ADA’s price plummeted by 39.7% to $0.39, while its market capitalization fell by 39.4% quarter-over-quarter (QoQ) to $14 billion. This decline was attributed to a slight increase in circulating supply, resulting in a drop in market cap ranking from 9th to 10th place.
Transaction fees on the Cardano network, crucial for processing transactions and covering storage costs, also suffered a significant decrease. Revenue in USD dropped by 44.3% QoQ to $0.74 million, while revenue measured in ADA fell by 28.0% to 1.60 million. The platform’s average daily transactions decreased by 27.5% QoQ to approximately 51,400, and the number of daily active addresses (DAAs) fell by 33.2% to 31,800. Despite a 23.1% drop in the average transaction fee in USD, there was a marginal 0.6% decline in the fee measured in ADA.
In terms of staking metrics, total ADA staked and the staking rate slightly increased, while the total value of staked ADA in USD decreased by 39.6% to $8.9 billion due to the falling price of ADA. Cardano’s treasury balance, measured in ADA, rose by 5.8% QoQ to 1.57 billion, but its dollar value decreased by 36.7% to $604.7 million. The introduction of new stablecoins like USDM and MyUSD, with rising market caps, indicates a shift in the stablecoin market landscape. Upcoming upgrades such as the Chang Hard Fork are expected to enhance Cardano’s governance capabilities and move the network closer to achieving its long-term goals of self-sustainability and participatory decision-making.
Decentralized application (DApp) activity on Cardano experienced declines, with average daily DApp transactions falling by 35.7% QoQ to 34,300, and average daily decentralized exchange (DEX) volume in USD decreasing by 42.5% to $4.2 million. Total value locked (TVL) on Cardano also dropped by 41.2% QoQ to $219 million, following a peak of $506 million in March 2024. The stablecoin market cap on the platform decreased by 12.4% QoQ to $19.6 million, and average daily non-fungible token (NFT) sales plummeted by 57.4% to under 730 transactions.
Despite the setbacks faced by Cardano and ADA in Q2 2024, there are ongoing developments within the ecosystem that provide hope for the future. The emergence of new stablecoins and upcoming upgrades demonstrate potential for growth and innovation. While challenges persist, the network continues to strive towards achieving its long-term objectives of sustainability and inclusive decision-making. As the cryptocurrency market evolves, Cardano remains a key player to watch for further advancements and improvements in the coming quarters.