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Cardano Achieves Notable 49% Quarter-over-Quarter Increase in Dapp Transactions; 10% Growth in Total Value Locked: Report
Cardano (ADA) has demonstrated encouraging signs of expansion in Q2, despite subdued market conditions. New infrastructure developments, including stablecoins, programming languages, and wallets, are enabling Cardano developers to create sophisticated applications that offer improved user experiences, as outlined in a recent report by Messari.
The blockchain intelligence platform indicated that the Cardano ecosystem has successfully diversified with new protocols that have significantly impacted various activity metrics, even as ADA’s price and market capitalization experienced a decline during this timeframe.
Cardano Ecosystem Growth: Q2
As per Messari’s report titled ‘State of Cardano’ for the Q2 edition, the average transaction value increased by 8.5% compared to the prior quarter, rising from $0.117 to $0.126. Despite this consecutive quarterly growth, the average transaction fee in USD remains 50.8% lower year over year, mainly due to the reduced ADA prices relative to the previous year.
Transaction activity also experienced a boost in the second quarter of the year. Average daily transactions rose by approximately 2% quarter-over-quarter, from 67,500 to 68,800. Messari emphasized that this growth is significant, as fluctuations in transactions and active addresses are generally correlated, although they have diverged somewhat in recent quarters.
Over the past five quarters, there has been a steady increase in the ratio of transactions to active addresses, indicating greater user engagement compared to earlier periods. In Q2, the Transaction / Active Address ratio reached 1.19, reflecting a sequential increase of 6.1% and a year-over-year rise of 13.2%.
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For the third consecutive quarter, Cardano has experienced growth in its average daily dapp transactions. Dapp activity surged with a remarkable 49.0% increase from the previous quarter in Q2, maintaining an average of 57,900 daily transactions.
Surging Blockchain Activity
Cardano’s total value locked (TVL) recorded a 9.7% quarter-over-quarter increase, reaching $151.7 million. This rise in TVL is particularly significant given the decline in ADA’s price. Additionally, the layer-1 smart contract platform’s year-to-date TVL has skyrocketed by 198.6% (in USD), elevating it from the 34th to the 21st position among all networks in 2023.
Minswap, an automated market maker (AMM), continued to maintain its status as the liquidity leader in Cardano DeFi, finishing the second quarter of the year with a TVL of nearly $50 million and over 32% market dominance.
The report also highlighted that the stablecoin infrastructure is another element driving this TVL growth on the blockchain. Data further indicate that Cardano’s stablecoin market cap has risen from 54th to 37th in 2023.
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