Cardano weathered a mixed end to 2024. While Q4 brought substantial gains in price and treasury holdings, recent weeks have seen ADA tumble alongside most cryptocurrencies.
The project did roll out major governance improvements and saw more DeFi activity, but it’s still grappling with a cooling NFT market and struggles to keep users consistently engaged.
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Cardano’s Q4 Financial Growth and Network Performance
Cardano recorded a price surge in Q4 2024, rising by 127%. The cryptocurrency started at $0.30 and peaked at $1.30, driving increased transaction fees.
Total fees collected rose by 24%, reaching $1.8 million, while the treasury balance grew by 63% year-over-year, holding 1.64 billion ADA. Network metrics showed mixed results.
Daily active addresses and total staked ADA remained stagnant, but average daily transactions grew by 6% year-over-year. DeFi activity expanded, with the TVL rising by 20% in USD terms, though it declined by 15% when measured in ADA.
The stablecoin market cap increased by 66%, and the USDA stablecoin is expected to inject between $7 million and $10 million in liquidity.
Cardano’s Ecosystem Growth and Challenges
With decentralized exchanges (DEXs) like MinSwap leading in transaction volume, Cardano’s DeFi sector experienced positive growth.
Platforms like Liquid, JPEG Store, Indigo, and WingRiders were important components of the ecosystem, and the volume of DEX trade rose by 40% annually. But the NFT industry saw a severe decline.
While ADA trading volume fell 78% year over year, NFT sales volume fell 83%. Activity on well-known sites like JPG Store decreased, which was indicative of a general downturn in NFT demand in the blockchain sector.
The host of Dapp Central, Farid, pointed out that general NFT projects are fading, with only utility-based NFTs showing signs of resilience.
Cardano made governance upgrades in Q4, including the Ouroboros Praos Protocol upgrade and the Chang Hard Fork, both aimed at improving network efficiency. The Midnight Partner Chain was also introduced to enhance scalability and interoperability.
Despite these advancements, concerns remain about declining user engagement and uncertain demand for DApps. Farid noted that the network must find new ways to drive activity beyond staking and trading.
Current Market Downturn and ADA’s Price Decline
Cardano’s strong Q4 performance has been overshadowed by a sharp decline lately.
Cardano’s ADA has taken a hit, trading around $0.59, after falling nearly 12% in the last day and over 26% in the past week. This nosedive is part of a market-wide correction that’s also dragging Bitcoin down. History suggests these dramatic plunges often precede major price swings – if Bitcoin finds its footing soon, ADA and other alternative cryptocurrencies could bounce back sharply.
The global crypto market has entered a bearish phase, impacting most major digital assets. While Cardano’s treasury expansion and DeFi growth remain positive indicators, the decline in NFT activity and user engagement presents ongoing challenges
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