Cardano Surges: ADA Revenue Soars 66.7% in Q4

The digital currency landscape witnessed a monumental climb by Cardano (ADA) in the fourth quarter of 2023, transcending its competition and marking a significant ascension across crucial performance indicators. According to a Messari report, ADA’s financial triumph was conspicuous, revealing a 66.7% surge in quarterly revenue when measured in USD. This boost was not solely tied to ADA’s bullish price dynamics but also reflected a robust increase of 10.6% in ADA-denominated revenue.

The fiscal stronghold of Cardano further solidified with its Treasury balance swelling by 2.6%, amassing a hefty 1.43 billion ADA. Since the inception, a fixed 20% of transaction fees are funneled to bolster this reserve, a figure which is subject to adjustment through community governance.

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Highlighting user engagement, the report noted that daily transaction counts soared by 10.9%, a stride significantly outperforming the 1.6% growth in daily active addresses. Over the recent year, an uptrend in the transactions-per-address ratio suggested a burgeoning class of power users within the network. Quarter-on-quarter, this ratio advanced by 9.2%, and an impressive 45.0% year-on-year, signaling a heavy lift in per-user activity following the deployment of multiple new protocols over the course of 2023.

Despite such promising engagement figures, the stake landscape depicted a slight downturn. Active stake dipped by 0.5% for a second consecutive quarter, with the figure standing at 22.8 billion ADA. Engaged stake, defined as being actively involved in protocol decision-making or operations, exhibited minor fluctuations in the latter half of the year. Both active and engaged stakes reported a decline of roughly 10% on a year-over-year basis.

The resurgence from the crypto winter manifested sharply in the domain of Total Value Locked (TVL) for Cardano, with the native asset’s locked value inflating by 166% quarter-on-quarter and a striking 693% year-on-year. Indigo secured pole position among protocols by TVL, outstripping former frontrunner, Minswap. Stablecoin TVL on Cardano heightened by 37% quarterly and 673% annually with the imminence of the Mehen-backed USDM stablecoin launch in March.

December 14th marked a historic peak, where Cardano’s TVL in USD soared to a high of $449 million, echoing the quarter’s 166% augmentation. This ascent also nudged ADA’s TVL ranking from 15th to 11th position quarter-on-quarter, signifying a dramatic climb from its 34th place at the year’s start. ADA-denominated TVL rivaled this success, cresting at over 700 million ADA.

Stablecoins, notably iUSD and DJED, introduced early in the year, were primary catalysts in the TVL expansion, with stable asset value locked rising by 36.8% to $21.5 million. This contributed to Cardano’s rising dominance in stablecoin market capitalization, climbing from 54th to 32nd position when mapped across different networks.

In contrast, the NFT sector faced a downturn, with transaction counts and trading volumes falling by 8.0% and 33.8% respectively in the quarter. Annually, these metrics presented a starker depreciation in activity. Only the count of unique sellers bucked this trend, skyrocketing by 213.2% year-over-year.

Regarding market valuation, ADA’s price trajectory soared by 127.2% in the quarter, dwarfing the entire crypto market’s 53.8% rise. This surge propelled ADA’s year-over-year change to an exultant 145.2%.

Currently, ADA persists in demonstrating vigorous market performance, trading at $0.5724, marking a 5.5% uptick over the previous day and 8% over the past month. These latest figures reaffirm ADA’s robust momentum as the market progresses into the first quarter of 2024.