Cardano and its native token, ADA, faced a significant decline in the second quarter of 2024, aligning with the overall downturn in the cryptocurrency market. The price of ADA dropped by 39.7% to $0.39, while its market capitalization fell by 39.4% to $14 billion. These numbers reflect a substantial decrease in key performance indicators for Cardano, indicating a challenging period for the project.
The report also highlighted a decrease in transaction metrics for Cardano. Transaction fees on the network decreased by 44.3% in USD and 28.0% in ADA. The average daily transactions on the platform dropped by 27.5% to approximately 51,400, and the number of daily active addresses fell by 33.2% to 31,800. These numbers suggest a decrease in user activity and engagement on the Cardano network during Q2 2024.
In terms of staking metrics, total ADA staked and the staking rate saw a slight increase. However, the total value of staked ADA in USD decreased significantly by 39.6% to $8.9 billion due to the falling price of ADA. Cardano’s treasury balance, measured in ADA, rose 5.8% quarter-over-quarter, although its dollar value decreased by 36.7%. These numbers indicate a mixed performance in staking activities on the platform.
Decentralized application (DApp) activity on Cardano experienced declines, with average daily DApp transactions falling by 35.7% to 34,300. Similarly, average daily decentralized exchange (DEX) volume in USD decreased by 42.5% during the quarter. The total value locked (TVL) on Cardano also dropped by 41.2%, following a broader crypto market downturn. Additionally, the stablecoin market cap on the platform saw a decrease of 12.4% quarter-over-quarter, signaling challenges in the stablecoin sector.
Despite the challenges faced during Q2 2024, the report highlighted ongoing developments within Cardano’s ecosystem. The emergence of new stablecoins like USDM and MyUSD with rising market caps suggests a shift in the platform’s landscape. Furthermore, upcoming upgrades such as the Chang Hard Fork aim to enhance Cardano’s governance capabilities, bringing the network closer to achieving its long-term goals of self-sustainability and participatory decision-making.
Cardano’s performance in the second quarter of 2024 exhibited significant declines in key metrics such as price, market capitalization, transaction fees, and user activity. While the staking metrics showed a mixed performance, the platform faced challenges in DApp and stablecoin activities. Despite these setbacks, ongoing developments and upcoming upgrades offer potential for growth and improvement in Cardano’s ecosystem moving forward.
