Cardano continued to make significant strides in the third quarter of 2023. With notable developments in interoperability and core infrastructure, Cardano’s future appears promising.
One of the key highlights from the State of Cardano report for Q3 2023 was the impressive growth in its stablecoin value. There was a 16% increase from quarter to quarter and a huge 461% increase for the year so far. The first push came from native stablecoins like iUSD. Then, Wanchain brought versions of well-known stablecoins USDT and USDC, pushing growth higher in quarter three.
The TVL remained steady over the quarter but witnessed a remarkable 198% increase in YTD figures. Notably, Cardano’s TVL ranking among all blockchain networks climbed from 34th at the start of the year to 15th, indicating a substantial rise in the network’s prominence.
In Q3, Cardano’s governance phase, known as Voltaire, gained momentum with the launch of SanchoNet and Intersect. SanchoNet, a testnet for on-chain governance, and Intersect, a Cardano member-based organization, are expected to play crucial roles in the governance of the network.
The financial analysis revealed that its revenue experienced a decline of 29.9% QoQ due to fluctuations in transaction fees, primarily influenced by users’ urgency to transact. Despite this decline, its Treasury balance increased by 7.2% QoQ to 1.39 billion ADA.
Cardano ADA’s Price and Yield Analysis
Cardano’s native asset, ADA, encountered a 9.5% QoQ price decline, consistent with the overall crypto market trend. The nominal staking yield for ADA delegators remained at 3.3%, and the real yield was 3.34%. Cardano’s transaction fees saw a notable decrease in average transaction fees (USD), dropping from $0.13 to $0.10 QoQ.
Moreover, the network’s performance in active addresses and daily transactions revealed a decrease, with daily active addresses dropping 28.9% QoQ. The Transaction / Active Address ratio increased by 23.4% QoQ, indicating that despite fewer active addresses, the network’s power users were more engaged.
The blockchain load decreased from over 50% in Q2 to roughly 40% in Q3. Additionally, new development languages and toolkits like Aiken improved execution speed and memory efficiency.
The ecosystem witnessed steady growth in stake pools and delegators, contributing to the network’s decentralization. However, stake and delegator distribution remained somewhat unbalanced among the total pools.
Nevertheless, Cardano’s continued progress in Q3’23 suggests a promising future, with infrastructure enhancements, growing DeFi potential, and the rise of various stablecoins contributing to the network’s overall growth and sustainability.
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