- Cardano faced declining financial metrics in Q4 2022.
- However, the daily transaction count of dApp transactions stopped during that period.
A place for more than 1000 decentralized applications (dApps), a new Report Messari revealed that the leading layer 1 blockchain Cardano (ADA) The fourth quarter of 2022 saw a similar increase and decrease.
Titled “State of Cardano Q4 2022,” Messari found that due to the unexpected crash of cryptocurrency exchange FTX in November, Cardano’s financial metrics, such as market capitalization and revenue, declined, as well as activity metrics, such as active address count and network. Lock (TVL) activated.
Nonetheless, Cardano posted an increase in daily transaction count, dApp transactions, and staking activity despite the entire market being affected by the FTX crash.
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The quarter came with bad news
According to the report, the 90-day review period was plagued by a massive drop in Cardano revenue.
According to Messari, Cardano’s revenue is “strongly tied to fees because they are the source of revenue.”
Thus, a 36% drop in transaction fees paid on the network in Q4 2022 culminated in a 28.3% decline in revenue over the same period.
In addition to the revenue drop, the collapse of FTX and Genesis will cause Cardano’s DeFi TVL (USD) to “decrease during the 2022 bear market” and experience a “further 34.8% decline in Q4”, Messari discovered.
Although Cardano’s TVL (ADA) rose 16.2% in Q4 2022, Messari said the continued decline in TVL (USD) during that period was partly due to the ADA price drop.
Messai sees a further decline in Cardano’s market cap/TVL ratio. The report states,
“Cardano’s market cap/TVL ratio decreased 10.8% in Q4 to 169.5. This proportion is still much larger than that of the major DeFi players, indicating that the Cardano DeFi ecosystem is small in absolute and relative terms.
Source: Mesari
Regarding NFT sales in Q4 2022, Cardano experienced a massive drop. According to Messari, the number of unique sellers per day on the network was significantly lower than that of competitors Flow and Polygon.
For most of the quarter, NFT trading volume was flat, with a momentary spike in activity in October due to the launch of OreMob, an anime profile picture (PFP) project.
Source: Mesari
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While Cardano’s financial metrics closed in Q4 2022 after a decline, daily on-chain transactions and dApp transactions grew by 13% and 16%, respectively.
Also, according to Messari, developer activity on Cardano intensified during that period as many projects went on-chain. Messari noted:
“In the fourth quarter, there were developments in areas such as stablecoins, Indigo Protocol synthetic assets, and new NFT projects.”
To bet on the series in the fourth quarter of 2022:
“Cardano’s active participation is at an all-time high of around 25.5 billion ADA. Betting increased on a quarterly and year-over-year basis, suggesting that pool operators and representatives are increasingly betting after receiving the issued ADA. Participation share peaked at approximately 74% at the end of the fourth quarter.
Source: Mesari
