Cardano (ADA): Quarterly Report Delivers Optimistic Results

Cardano (ADA) is currently trading at a one-year high of just under $0.45. Cardano is thus currently still miles away from the highs in 2021 with a good $3 per ADA – but an upward trend is nevertheless clear. That is also reflected in the latest quarterly report of the analysis service Messari about Cardano. Positive developments in the key figures for market capitalization and in the Decentralized Finance (DeFi) division are highlighted.

According to Messari, Cardano’s market capitalization was just over $13 billion at the end of Q1 2023, marking a 46 percent increase from the previous quarter. It should be noted, however, that Q4 2022 brought a slump with the collapse of the FTX empire and subsequent domino effects for the overall crypto market. If we take Q1 2022 as a point of comparison for Cardano, ADA’s market capitalization has shrunk by a good 60 percent.

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The situation is similar for the TVL (Total Value Locked) indicator, which is considered authoritative for the DeFi division

Here, ADA’s ecosystem closed the first quarter of 2023 with just under 140 million UD dollars. In the previous closing quarter of 2022, Cardano TVL was just $51 million – but in Q1 2022, it was nearly $290 million. Messari highlights the launch of stablecoin DJED in January as a new incentive for DeFi under ADA, and the launch of new protocols like Liqwid.

Cardano founder Charles Hoskinson had most recently identified the NFTs division as a key growth driver. But that’s where Messari’s data speaks a different language. In Q1 2023, Cardano traded NFTs with a total volume of around $80 million – in the last quarter of 2022, the figure was just under $117 million. What gives hope is that the number of NFT buyers on Cardano is much higher than the number of sellers, and the ADA NFT market makes a healthy impression in that respect.

Conclusion: Cardano recovers slowly – but the quarterly report is not very neutral

The comprehensive Messari Report draws a positive conclusion to the first three Cardano months in 2023 and sees further impulses within reach through development projects. However, as an investor, you should also know: Messari’s analysis was supported by Input Output, the crypto company behind ADA.

Even if editorial independence is invoked – the selection of comparison periods was done in such a way that growth could be read. A simple change of focus for Cardano tends to give the overall picture that ADA is unable to break away from trends in the overall market and cannot completely copy the momentum of the lead currency Bitcoin (BTC) in terms of price development.

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