- Cardano’s blockchain activity and value locked rose significantly in Q2, driven by network upgrades and growing developer interest.
- Despite increased transactional activity, daily active users saw a 4% decline, marking the fourth decrease in the past five quarters.
Cardano’s Tech Leap: Upgrades Drive Stellar Growth in Blockchain Metrics
The second quarter of 2023 witnessed a substantial surge in Cardano’s blockchain activity, with metrics showing marked increases in both transaction volumes and value locked. Analytics firm Messari attributes this uptick to a series of network upgrades and a burgeoning interest from developers.
Organic methodical real adoption driven by a decentralized community, not an astroturfed pay to play centralized curator, Cardano is growing and every day getting more advanced https://t.co/VdiSWD0yht
— Charles Hoskinson (@IOHK_Charles) August 10, 2023
Decentralized exchange Minswap took the lead in growth, but the spike wasn’t isolated to this platform alone. A range of new decentralized applications (dapps) made significant contributions to the heightened activity. This analysis was derived from a comprehensive report commissioned by Cardano’s primary developer, Input Output, which drew comparisons between Q2 and Q1 figures.
Interestingly, while the transactional activity on Cardano experienced a surge, the number of daily active users saw a 4% decline. This marks the fourth consecutive quarter where address activity recorded a dip. However, deducing from the report, it appears that the existing user base is more active than before. This is evidenced by the Transaction/Active Address ratio which stood at 1.19 in Q2, marking a 6.1% QoQ and 13.2% YoY increase.
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The blockchain load, essentially the volume of data contained within blocks over a set period, rose significantly from under 40% in Q1 to 50% in Q2. Notably, May saw it peaking at a whopping 81%.
Innovations and Upgrades: The Core Catalysts
Cardano’s bustling activity is closely tied to the pivotal upgrades introduced this year. One such upgrade in June revamped the “epoch” transitions, optimizing the blockchain experience for its users. For clarity, epochs in the Cardano network are defined time periods, with each epoch spanning 432,000 slots and each slot representing a second. Within these epochs, ADA tokens are staked, during which new blocks are produced on the network. This mechanism potentially elevates the demand for tokens, making block rewards more enticing based on the prevailing activity.
March witnessed the integration of a feature on Milkomeda, a bridge connecting blockchains to the Ethereum Virtual Machine (EVM). This feature opened doors for Cardano users to leverage EVM smart contracts using any Cardano (ADA) wallet, broadening the spectrum of its utility.
For those unfamiliar, the Ethereum Virtual Machine acts as a hub for all Ethereum accounts and smart contracts. It functions as a virtual realm utilized by developers to forge dapps. With Cardano’s new feature, Ethereum dapp developers can now transition to Cardano’s infrastructure using the Ethereum-native Solidity programming language. This eliminates the need to acquaint themselves with new tools or languages. Furthermore, the applications birthed from this integration will solely utilize Cardano tokens, thereby enhancing the tokens’ utility for its holders.
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