House to over 1000 decentralized applications (dApps), a new report from Messari revealed that the leading Layer 1 blockchain Cardano [ADA] saw growth and some corresponding declines in Q4 2022.
Titled “State of Cardano Q4 2022,” Messari found that due to the unexpected collapse of cryptocurrency exchange FTX in November, there was a downturn in Cardano’s 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.
Nonetheless, despite the hit suffered by the entire market due to FTX’s fallout, Cardano logged increments in daily transactions count, dApp transactions, and engaged staking activity.
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Per the report, the 90-day period under review was plagued by a significant decline in Cardano’s revenue.
According to Messari, Cardano’s revenues are “tightly coupled with fees as they are the source of revenue.”
As such, the 36% decline in transaction fees paid on the network in Q4 2022 culminated in a 28.3% corresponding decrease in revenue during the same period.
Source: Messari
In addition to a decline in revenue, FTX and Genesis’ collapses caused Cardano’s DeFi TVL (USD) to “decline through the 2022 bear market” and to take “a further 34.8% decline in Q4,” Messari found.
Although Cardano’s TVL (ADA) increased by 16.2% in Q4 2022, Messari noted that the steady decline in TVL (USD) during that period was due partially to ADA’s price drop.
Messai found a further drop in Cardano’s market capitalization/ TVL ratio. The report stated,
“Cardano’s market cap / TVL ratio decreased 10.8% to 169.5 in Q4. This ratio is still orders of magnitude larger than that of the main
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