Cardano (ADA) has recently demonstrated impressive growth and surpassed its competitors, achieving remarkable progress during the fourth quarter (Q4) of 2023. A comprehensive report by Messari reveals that Cardano outperformed other cryptocurrencies in key metrics, reflecting its strong development and increasing user adoption.
ADA’s revenue in USD witnessed a significant increase of 66.7% quarter-over-quarter (QoQ) in Q4. This growth was fueled not only by ADA’s price action but also by a noteworthy 10.6% QoQ rise in revenue denominated in ADA. The increase in revenue highlights the attractiveness of Cardano as a platform and the growing demand for its native token.
Cardano’s Treasury balance expanded by 2.6% QoQ, reaching an impressive 1.43 billion ADA. This growth aligns with the upward trend observed in previous quarters. Currently, 20% of transaction fees contribute to the treasury, and this percentage can be adjusted through governance. The expansion of the Treasury balance signifies the increasing financial strength of the Cardano ecosystem.
Cardano experienced an impressive 10.9% QoQ growth in average daily transactions, outpacing 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 rising number of power users. In Q4, this ratio witnessed a substantial 9.2% sequential increase and an impressive 45.0% year-over-year (YoY) growth. The development and introduction of various protocols throughout 2023 contributed to the increased average activity per user.
In terms of stake, active stake declined by 0.5% QoQ for the second consecutive quarter, amounting to 22.8 billion ADA. Engaged stake remained relatively flat in the second half of 2023. However, both active and engaged stake witnessed a YoY decrease of 10.2% and 9.6%, respectively. Although there is room for improvement in stake metrics, the overall growth of Cardano in other areas offsets these declines.
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. Additionally, TVL of stablecoins on Cardano increased by 37% QoQ and 673% YoY. These impressive growth numbers highlight the increasing interest and confidence in Cardano’s decentralized finance (DeFi) capabilities.
Stablecoins played a crucial role in Cardano’s growth, with steady increases in TVL and market cap rankings among other networks. However, non-fungible token (NFT) activity experienced a decline in Q4. NFT transactions and trading volume decreased by 8.0% and 33.8% QoQ, respectively. The only NFT metric to show growth in 2023 was the number of unique sellers, which increased by an outstanding 213.2% YoY.
One of the standout achievements for Cardano in Q4 was the surge in ADA’s price, which increased by an impressive 127.2% QoQ. This outpaced the overall crypto market’s 53.8% increase during the same period. The strong price performance of ADA contributed to its remarkable YoY change of 145.2%. As of now, ADA continues to show significant gains, further solidifying its bullish momentum as the market enters the middle of the first quarter of 2024.
Cardano’s progress during the fourth quarter of 2023 clearly demonstrates its competitiveness and growth in the cryptocurrency market. From significant increases in revenue and impressive transaction growth to a surge in Total Value Locked and a notable price surge, Cardano has proven its ability to outperform its peers. As the ecosystem continues to develop and new projects are introduced, Cardano is well positioned for further success in the future.