Cardano (ADA) Market Cap Dips to $14B as the Project Experiences Notable Decline in Q2 2024

According to a recent report by data intelligence firm Messari, Cardano and its native token, ADA, experienced a notable decline in the second quarter (Q2) of 2024

Cryptocurrency platform Cardano and its native token ADA experienced a downturn in the second quarter (Q2) of 2024, according to a recent report by data intelligence firm Messari.

The platform's key performance indicators (KPIs) also showed significant decreases across various metrics.

Cardano’s price dropped 39.7% to $0.39, while its market capitalization fell by 39.4% quarter-over-quarter (QoQ) to $14 billion, as noted by the report.

A slight increase in circulating supply led to the minor difference in market cap figures and a drop in ADA’s market cap ranking from 9th to 10th place.

Transaction fees on the Cardano network, which are used to cover storage costs and facilitate transactions, also saw a decline.

Revenue in USD decreased by 44.3% QoQ to $0.74 million, and revenue measured in ADA fell by 28.0% to 1.60 million.

The platform's average daily transactions also decreased by 27.5% QoQ to approximately 51,400, and the number of daily active addresses (DAAs) fell by 33.2% to 31,800.

Additionally, the average transaction fee in USD dropped by 23.1%, from $0.21 to $0.16. However, the average fee in ADA saw only a marginal decline of 0.6%, remaining at 0.34.

Despite these setbacks, the ratio of transactions to active addresses increased by 8.4% QoQ to 1.62, indicating a rise in “power users” engaging more frequently with the platform.

In terms of staking metrics, total ADA staked and the staking rate increased slightly, while the total value of staked ADA in USD decreased significantly by 39.6% to $8.9 billion, primarily due to the falling price of ADA.

Cardano’s treasury balance, measured in ADA, rose by 5.8% QoQ to 1.57 billion, though 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 also saw declines, with average daily DApp transactions falling 35.7% QoQ to 34,300 and average daily decentralized exchange (DEX) volume in USD decreasing by 42.5% to $4.2 million.

Cardano TVL Drop Amid Market Downturn

Total value locked (TVL) on Cardano dropped 41.2% QoQ to $219 million, following a peak of $506 million in March 2024, driven by a broader crypto market downturn rather than Cardano-specific factors.

Moreover, for the first time since the introduction of Cardano’s stablecoins in late 2022, the stablecoin market cap on the platform decreased by 12.4% QoQ to $19.6 million.

Average daily non-fungible token (NFT) sales also took a hit, plummeting 57.4% QoQ to under 730 transactions.

Despite these challenges, the report highlights ongoing developments within Cardano’s ecosystem.

The emergence of new stablecoins like USDM and MyUSD saw their market caps rise dramatically, indicating a shift in the landscape.

Additionally, upcoming upgrades, such as the Chang Hard Fork, promise to increase Cardano’s governance capabilities, moving the network closer to achieving its long-term goals of self-sustainability and participatory decision-making.

At the time of writing, ADA was trading at $0.34, down 0.7% for the 24-hour period.

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