Cardano ‘s Q1 Growth Driven by DeFi TVL and Technological Advances

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By Degen Lipsa

Cardano saw a massive growth leap in Q1 2023, according to a new study from crypto analytics platform Messari, with over tripled Total Value Locked (TVL) in decentralised finance (DeFi) and significant technological achievements.

The proof-of-stake blockchain network has seen growing acceptance of new stablecoins, as well as network scalability and virtual machine (VM) compatibility upgrades.

According to the study, Layer-2 scaling solutions have been deployed on the Cardano mainnet, and sidechains like Milkomeda C1 and IOG’s EVM sidechain are being developed to improve cross-chain compatibility.

Cardano's Q1 growth
Cardano’s Q1 growth . Image Courtesy: cryptoglobe

The blockchain’s programming language compatibility has also been increased to include Python, TypeScript, Marlowe, and Helios, making it more accessible to developers.

DeFi TVL on Cardano increased by 172% quarter over quarter, from $50.8 million in Q4 2022 to $138.3 million at the end of Q1 2023. The network’s stablecoin volume surged by 261% from $2.8 million in Q4 to $10 million at the end of Q1, with Indigo’s IUSD and Djed’s DJED having the highest volumes.

The prominence of major DEXs such as Minswap, SundaeSwap, and WingRiders has waned as interest in other protocols has grown.

Cardano’s native token, ADA, increased in value by 54% in Q1, reaching $0.44 on April 18, 2023. The platform’s treasury balance increased by 100 million ADA to 1.21 billion, representing a 9.1% and 66% year-on-year increase in ADA and USD terms, respectively. The treasury balance climbed by $278 million to $460 million in USD terms.

Despite the overall rise, Cardano saw decreases in new addresses (up 71.5%) and average daily transactions (up 10.6%) from quarter to quarter. Daily NFT transactions on the network declined 27% in Q1, while daily unique purchasers fell 23%.

Furthermore, the Cardano Foundation just released its first Annual Report, highlighting the project’s accomplishments in 2022. According to the paper, the Foundation has altered its delegation strategy to reward stake pool operators (SPOs) that contribute Cardano-building tools to the growing community on a consistent basis.

The Foundation also claims to have linked the Cardano Improvement Proposals (CIPs) process with best practises in open source.

Cardano’s Q1 Growth Driven by DeFi TVL and Technological Advances appeared first on Coin Edition.

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