- Q1 has produced some positive metrics for Cardano.
- TVL has seen the most significant rise, while the market cap is also up, thanks to an ADA price increase.
- Stablecoins are at the heart of the TVL growth, an aspect long lacking on Cardano.
The first three months of 2023 have been far more promising for the general cryptocurrency markets. The price of Bitcoin is up around 50%, and other coins are also cashing in on the bullish trends – including Cardano, which has some impressive metrics to boast about.
In a Messari report titled The State of Cardano Q1 2023, the Ethereum competitor was shown to have increased its TVL by 172% QoQ from $50.8 million to $138.3 million. ADA’s market cap also rose by 54% QoQ from $8.6 billion to $13.2 billion. This increase moved Cardano from the 9th to the 7th largest network by market cap.
Cardano saw significant increases in financial and ecosystem metrics due to increased dApp transactions and the adoption of new stablecoins. The recent focus on new stablecoins catalyzed the impressive TVL growth, as they have always been vital to DeFi but were missing from the Cardano ecosystem.
Stablecoin volume grew even faster than overall TVL, increasing 261% QoQ from $2.8 million to $10.0 million. Indigo’s IUSD and Djed’s DJED stablecoins were the main drivers.
The general market uptrend has also helped the price of ADA rise similarly to Bitcoin. There has been a 54% increase in the price of ADA through Q1; the start of the year began with a price of $0.24 and has topped a year-high of $0.45.
The price rise of ADA would have also played a part in the growth of the coin’s market share, but the fact it has managed to leapfrog a coin like Doge speaks volumes about the potential for Cardano’s sustainable growth.
Technical developments have also progressed in 2023 with positive scalability and VM compatibility advancements. Several Layer-2 scaling solutions were deployed on mainnet, and sidechains are still being built, helping to increase compatibility with other ecosystems.
On the Flipside
- Despite major growth in key metrics, there has also been a substantial fall in the creation of new addresses. New addresses and average daily transactions decreased QoQ by 71.5% and 10.6%, respectively.
Why You Should Care
Cardano has long been a competitor for Ethereum, and competition will always be good for the crypto space. If Cardano can continue to gain traction and provide positive growth as a platform, it will bode well for the health of the blockchain and crypto space.
Read more about Cardano’s lightweight Lace Wallet:
Cardano’s IOG Launches Revolutionary Lace Wallet Platform: What Does It Do?
Read more about Gary Gensler’s moves to control crypto:
Gensler Hearing: SEC Chair Wants to Go After “All Crypto Assets”