Cardano had a successful first quarter of 2023, solidifying its place as one of the top networks by market capitalization. The Messari State of Cardano Q1 2023 report noted that ADA’s market cap rose from $8.6 billion to $13.2 billion. Around the same time, the proof-of-stake (PoS) Layer-1 that had integrated smart contracts in its platform due to the Alonzo upgrade in 2021 saw its total value locked (TVL) rise by 172% from $50.8 million to $138.3 million. Automated market maker (AMM) Minswap continued its dominance in the network, however its overall DEX total value locked increased by $31.7 million.

At the same time, however, transaction fees increased by a dollar to $0.12. On a positive note, the number of new addresses and average daily transactions still increased by 28.5% and 90.6% respectively. Cardano established its place as the fifth largest network by NFT secondary sales volume in Q4 2022 with $40.5 million, but daily NFT transactions did see a dip of 27% with a 23% dip among daily unique purchasers.

To continue its success, Cardano Foundation released its first annual report on April 18. The foundation’s year-end audit is due in May 2023 and will be carried out by professional services company Grant Thornton. In addition, Cardano has seen its investments products garner increased interest as its weekly flow has exceeded $0.1 million.

It remains to be seen whether Cardano can sustain its solid momentum from the first quarter of 2023. Factors such as Grant Thornton’s audit report and continued growth of AMMs could either accelerate or impede its progress. As the crypto space evolves,Cardano’s future progress rests on the effectiveness of its governance, the capacity of its dev teams, and the demand for DeFi products using its PoS Layer-1 protocol.



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