Cardano’s TVL increased significantly, but NFT trades fell.
At the time of writing, ADA was undergoing a price correction as it fell by 5%.

Messari published a report about it Cardano [ADA] on April 19 which highlighted the situation in the first quarter of 2023. One of the most notable updates right away was that Cardano’s market cap increased by more than 50% quarter over quarter, from $8.6 billion to $13.2 billion.

This growth also helped Cardano reach 7th place in the list of cryptos by market capitalization.

Read from Cardano [ADA] Price prediction 2023-24

Performance analysis of Q1

Messari’s report stated that despite a huge increase in market capitalization, the Cardano network failed to attract new users. New addresses and average daily transactions decreased QoQ by 71.5% and 10.6%, respectively.

Source: Messari

CardanoTransaction costs increased in the last quarter, but were still lower than in Q3 2022. The possible reasons for the decline in transaction costs may be that network traffic was more consistent in Q1 than in Q3.

Cardano’s DeFi space was booming

Cardano’s performance in the DeFi space has been commendable, as it recorded a more than 172% increase in QoQ. The blockchain’s Total Value Locked (TVL) went from $50.8 million to $138.3 million.

Messari’s report also stated that this huge boost in DeFi performance can be attributed to the adoption of Djed stablecoin in the network. The stablecoin debuted in the first quarter of 2023 with a value of $1.8 million on its first day.

Source: Messari

A look at the state of Cardano in NFT space

Cardano‘s performance in NFT space ran into a few roadblocks. For example, daily NFT transactions fell by 27% in the past quarter.

Additionally, daily unique buyers also followed a similar trajectory, falling 23%. Interestingly, the number of unique buyers in Q1 far outnumbered the number of unique sellers. There were a total of 8,900 verified NFT projects on Cardano.

Source: Messari

Cardano NFTs in Q2 2023

Data from Santiment showed that the total number of NFT transactions has fallen since the start of the new quarter.

Source: Sentiment

It was also interesting to see that on the one hand, the number of unique sellers increased by more than 300%, while on the other hand, the number of unique buyers decreased in the last 30 days. Nevertheless, Cardano‘s NFT sales volume registered an uptick, which was optimistic.


Realistic or not, here it is ADA market cap in BTC‘s conditions

The future of ADA looks bright

The whales had been very confident in the state of ADA since the beginning of the second quarter. This was evident in the high number of whale transactions. Not only that, but the positive sentiment surrounding ADA has also increased recently, reflecting the crypto community’s trust in the token.

Source: Sentiment

However, at the time of writing, ADA was under pressure as the price fell more than 5% in the past 24 hours. The sign was trade at $0.4174 with a market cap of $14.5 billion. The direction Cardano is headed this quarter will be interesting to analyze.

This post Cardano: Assessing ADA’s Q1 2023 Performance and Road to Q2

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