- Cardano’s Q1 performance saw an impressive increase in financial and ecosystem metrics.
- Messari’s Protocol Research Analyst Red Sheehan recently released the “State of Cardano Q1 2023” report.
Cardano’s ($ADA) Q1 2023 performance was impressive, as highlighted in Messari’s “State of Cardano Q1 2023” report. Cardano, a Proof-of-Stake (PoS) Layer-1 smart contract network that prioritizes security, scalability, and sustainability, saw a decrease in new addresses and average daily transactions. However, the average transaction fee rose, albeit still lower than the Q3 2022 average transaction fee.
The financial overview section of the report showcased ADA’s price increase by 54%, moving Cardano to the seventh largest cryptocurrency by market cap. The ecosystem overview section highlighted Cardano’s growth in USD-denominated TVL, which increased by 172% QoQ, driven by the adoption of new stablecoins in the DeFi market. The report also stated that Indigo’s IUSD and Djed’s DJED stablecoins contributed to a 261% QoQ increase in the total stablecoin value.
The report attributes the shift in dominance from incumbent DEXs to emerging DeFi applications, which include Djed, Liqwid, and Indigo, for their respective contributions towards boosting the overall TVL growth. The first Hydra Head, a Layer-2 state channel scaling solution, was introduced to the mainnet in March but with limited implementation. Meanwhile, Milkomeda C1, IOG’s EVM proof-of-concept sidechain, Wanchain, and Midnight continue their efforts to enhance interoperability and explore new use cases within the broader Cardano ecosystem.
The Cardano Foundation also recently released its first Annual Report, which highlights its achievements in operational resilience, education, and adoption. The report showcases the foundation’s work in various areas throughout 2022, demonstrating progress towards its long-term mission of providing the world with dependable, open, and decentralized infrastructures. CEO Frederik Gregaard expressed his happiness about the report and its showcase of the foundation team’s dedication and hard work.