Cardano (ADA) ‘Power Users’ Grew Significantly in Q2, Report Finds

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As a seasoned researcher with over two decades of experience in the crypto space, I’ve seen my fair share of market fluctuations and network evolutions. The recent developments in the Cardano network have caught my attention, and not just because of the intriguing mix of growth and decline it’s experiencing.

In the second quarter of 2024, there was a significant rise in active, heavy users on the Cardano network, as suggested by Messari’s latest report titled “Cardano Q2 2024: A Look Back.”

The ratio of transactions to active addresses (txs/DAAs) climbed 8.4% QoQ to 1.62, indicating an increase in “power users” of Cardano.

During the second quarter of 2024, it was observed that key financial, network, and ecosystem indicators for Cardano saw a decline. The number of average daily transactions dropped by approximately 27.5%, settling at around 51,400. Similarly, the active addresses per day decreased by about 33.2% to roughly 31,800.

In Q2 of 2024, it appears that there has been a significant downturn in the state of Cardano. Here are some key metrics:

— Pat_Kras (@Solofunk30) August 26, 2024

Contrarily, Cardano’s average transaction fee decreased by 23.1% quarter-on-quarter, going from $0.21 to $0.16, whereas the average transaction fee in ADA experienced a minimal decrease of just 0.6%, settling at 0.34.

In spite of the decrease, the Cardano ecosystem grew and developed significantly during Q2. Two new stablecoins – USDM and MyUSD – were introduced, experiencing remarkable expansion in their market capitalization, increasing by 2,557.6% and 694.8%, respectively.

Since its launch on March 16, the market value of USDM has grown a staggering 2,557.6% quarter-over-quarter to reach an impressive $3.2 million, while MyUSD’s market capitalization experienced a substantial 694.8% growth quarter-over-quarter, putting it at $2.1 million.

Several protocols launched Version 2 updates, one of them being SundaeSwap, that showed impressive 16.3% quarter-over-quarter growth in TVL (Total Value Locked in USD), reaching approximately $12.7 million.

Chang network upgrade approaching

In April, Cardano unveiled the Chang hard fork as a twofold update to their network. This update aims to introduce on-chain governance and is instrumental in achieving the primary objective of Cardano’s last development stage, known as Voltaire.

Voltaire moves closer to achieving Cardano’s self-governance by implementing on-chain voting, off-chain solutions, and organizations like Intersect, which is run collectively by its members.

For the upcoming quarters, the Cardano community might look forward to the Chang hard fork, a significant update that brings on-chain governance to the platform. Post the implementation of the Chang hard fork, DRepresentatives (DReps), Stake Pool Operators (SPOs) and the Constitutional Committee will manage all aspects of the network using an on-chain voting and treasury system outlined in CIP-1694. This shift in governance will move responsibility away from IOG, Cardano Foundation, and EMURGO, who initially held the seven genesis keys for governance.

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2024-08-27 18:00