Cardano and its native token, ADA, faced a significant decline in the second quarter of 2024, mirroring the overall downtrend 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. This decline was attributed to an increase in circulating supply, leading to a drop in market cap rankings from 9th to 10th place.
Transaction fees on the Cardano network, crucial for processing transactions and covering storage costs, also saw a decrease in revenue. Revenue in USD decreased by 44.3% to $0.74 million, while revenue measured in ADA fell by 28.0% to 1.60 million. Moreover, average daily transactions and daily active addresses declined by 27.5% and 33.2%, respectively. The average transaction fee in USD dropped by 23.1%, while the average fee in ADA saw only a marginal decline of 0.6%.
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% to 1.57 billion, but its dollar value decreased by 36.7% to $604.7 million. Currently, 20% of transaction fees are allocated to the treasury.
Decentralized application (DApp) activity on Cardano experienced declines, with average daily DApp transactions falling by 35.7% 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% to $219 million. The stablecoin market cap on the platform decreased by 12.4% to $19.6 million, marking the first decline since late 2022.
Despite these challenges, the report highlights ongoing developments within Cardano’s ecosystem. The emergence of new stablecoins like USDM and MyUSD with rising market caps indicates a shifting landscape. Furthermore, upcoming upgrades such as the Chang Hard Fork aim to enhance Cardano’s governance capabilities, bringing the network closer to its long-term goals of self-sustainability and participatory decision-making.
The decline of Cardano in Q2 2024 reflects the broader downturn in the cryptocurrency market. While facing setbacks in various metrics, the platform continues to evolve and innovate, paving the way for future growth and development. As Cardano navigates these challenges, its ability to adapt and implement strategic upgrades will be crucial in maintaining its position in the ever-changing digital landscape.