Home Market Cardano’s DeFi TVL rose 172% in Q1 amid significant ecosystem growth: Messari

Cardano’s DeFi TVL rose 172% in Q1 amid significant ecosystem growth: Messari

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  • Cardano TVL grew 172% QoQ, from $50.8 million in Q4 2022 to $138.3 million in Q1 2022.
  • The Indigo and Djed stablecoins fueled Cardano’s overall TVL growth, with volume spikes of 72% and 27% respectively.
  • ADA’s price also rose in the first quarter, up 54% amid the cryptocurrency’s broader bull market.

Cardano, currently the 7th largest crypto network by market capitalization, has been significantly positive in the first three months of the year.

First quarter Cardano ecosystem insights shared by crypto market research platform Messari on Tuesday show the proof-of-stake blockchain network posted significant increases in both financial and ecosystem metrics over the quarter. I’m here.

In particular, Messari said in his State of Cardano Q1 2023: report ADA network market cap and DeFi Total Value Locked (TVL) have risen significantly. This growth is attributed to Cardano’s increased adoption of new stablecoins amid notable technical developments around network scalability and VM compatibility.

Among the key developments was the deployment of multiple Layer 2 solutions on the Cardano mainnet. Also worth noting is the increase in sidechains that continue to enhance cross-chain compatibility.

However, it is worth noting that Cardano new addresses decreased (71.5%) and average daily transactions decreased by 10.6% quarter-on-quarter. His 1-day NFT transactions on the network also fell in Q1, down 27% as his 1-day unique his buyers shrank 23%.

Cardano’s DeFi TVL grew 172% in Q1 2023

According to the Cardano ecosystem overview, DeFi TVL grew 172% quarter-on-quarter, jumping from $50.8 million in Q4 2022 to $138.3 million by the end of Q1 2023. DeFi Llama data show Cardano’s DeFi TVL grew 39% last month to $171.28 million, accounting for over $12 million.

According to Messari, the increase in the first quarter was primarily due to broader growth across established ecosystem protocols such as MinSwap, as well as increased adoption of newer protocols and stablecoins. This includes the growth of Djed, an ADA-backed stablecoin protocol, his Indigo, a synthetic asset and stablecoin issuer, and his TVL, Liqwid Finance, a Cardano-based borrowing and lending protocol.

Cardano stablecoin volume grows 261% QoQ, faster than overall TVL

As noted above, Cardano stablecoin volume exploded in Q1, growing at a faster rate than TVL across the network. Cardano has three stablecoins (Sharelake’s RUSD, Indigo’s IUSD, and Djed’s DJED), but only two had the highest amount of volume.

In fact, Indigo’s IUSD and Djed’s DJED helped drive the value of stablecoins across the Cardano ecosystem by 261% from $2.8 million in Q4 to $10 million by the end of Q1. . This is the result of a 72% increase in he IUSD trading volume and a 27% increase in DJED trading volume in Q4. RUSD had a volume advantage of less than 1%.

Rising interest in new protocols has led to a decline in the dominance of major DEXs such as Minswap, SundaeSwap and WingRiders in the first quarter, Sheehan notes in the report.

ADA price rose 54% in Q1 amid growth in other financial metrics

In terms of price action, data shows Cardano’s native coin value rose 54% in Q1, while ADA’s price reflects the broader market’s upward trend in Q1 2023. . As of April 18, 2023, Cardano is priced at $0.44, up more than 30%. % increase over the past month and over 77% increase year-to-date.

Meanwhile, Cardano’s financial balance increased by 100 million ADA to 1.21 billion. ADA and USD grew 9.1% and 66% quarter-over-quarter, respectively. Treasury balances in US dollars increased from $278 million to $460 million.

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