Cardano Suffers Metric Declines, but Dapp Transactions Rally in Q4 2022
• Cardano saw a decline in financial metrics in Q4 2022, however its daily transactions dApp transactions count rallied during that period.
• According to a report from Messari, Cardano’s revenues decreased by 28.3 percent and its market capitalization/TVL ratio dropped by 10.8 percent during the quarter.
• Despite this, Cardano saw growth in daily transactions count, dApp transactions, and engaged staking activity.
Cardano Suffers Financial Decline in Q4 2022
Cardano suffered a decline in financial metrics in Q4 2022. However, according to a new report from Messari titled „State of Cardano Q4 2022,“ the leading Layer 1 blockchain saw growth and some corresponding declines during the same period. Due to the unexpected collapse of cryptocurrency exchange FTX in November, there was a downturn in financial metrics like market capitalization and revenue as well as activity metrics such as the count of active addresses and total value locked (TVL) on the network.
Decrease In Revenue & Market Capitalization
The 90-day period under review was plagued by a significant decline in Cardano’s revenue due to lower transaction fees paid on the network which culminated in an overall 28.3% decrease for the quarter. Additionally, FTX and Genesis‘ collapses caused Cardano’s DeFi TVL (USD) to „decline through the 2022 bear market“ with a further 34.8% drop during this time frame while ADA’s price also dropped causing Cardano’s market cap/TVL ratio to decrease 10.8%. NFT sales also declined substantially with fewer unique sellers per day than competitors Flow and Polygon resulting in flat trading volumes throughout most of Q4 2022 aside from one momentary spike due to OREMOB’s launch project.
Growth In Daily Transactions Count & Engaged Staking Activity
Despite suffering financially during this time period, Cardano still logged increments in daily transactions count, dApp transactions, and engaged staking activity throughout Q4 2022 which helped buoy its performance somewhat despite other negative factors affecting it at that time such as FTX’s collapse and ADA’s price drop.
Though Cardano faced some difficult circumstances such as FTX regulatory issues and consequent losses due to ADA’s price drop which had an effect on its overall financial standing for Q4 2022, it still managed to experience some positive gains like growth increases for daily transaction counts and engaged staking activities which helped offset many of these losses somewhat making it possible for them to remain competitive within their space moving forward into 2023-24 despite facing significant headwinds along their path so far this year