Cardano's DeFi TVL Climbs 13%: Key Drivers Behind ADA's Growth

1. Cardano’s ADA price surged 126% in Q4 2024, elevating its market cap to $30.3 billion.
2. Network activity spiked, with daily transactions up 65% and treasury value reaching $1.4 billion.
3. Updates like Ouroboros Peras and Chang Hard Fork boosted scalability and governance.

Cardano experienced remarkable growth in Q4 2024, with ADA’s price increasing by 126% to $0.84. This surge pushed its market capitalization up 127% quarter-over-quarter (QoQ) to $30.3 billion despite a slight 2.2% drop in circulating supply. ADA’s circulating market cap rank climbed from 11th to 9th, aligning with the U.S. election’s impact on crypto sentiment and a rise in U.S.-based coins.

Transaction fees also saw notable changes. While fees in USD jumped 254% QoQ to $1.8 million, ADA-denominated fees fell 60% to 2.2 million. This highlights the network’s growing activity alongside the token’s price appreciation.

Milestones with Ouroboros Peras and Chang Hard Fork

Cardano unveiled significant upgrades in 2024, starting with the Ouroboros Peras update in October. This upgrade introduced stake-based voting and faster transaction settlements, enhancing scalability alongside Hydra and Mithril solutions. The Chang Hard Fork, initiated in September, set the stage for on-chain governance under the Voltaire roadmap phase.

Phase one of the Chang upgrade introduced an interim constitution and a governance committee with veto powers. Phase two, planned for January 2025, will fully empower ADA holders to vote on governance proposals and manage the treasury. These milestones mark a critical step toward Cardano’s self-sustainability.

Cardano’s DeFi and NFT Ecosystem Developments

Cardano’s decentralized finance (DeFi) ecosystem witnessed impressive growth, with total value locked (TVL) rising 13% QoQ to $231.6 million. Liqwid Finance surpassed Minswap as the leading protocol by TVL, growing 141% QoQ to $113.6 million. Meanwhile, DEX activity surged, with average daily volumes up 271% QoQ to $8.9 million, led by Minswap and WingRiders.

DApp activity remained robust, with Minswap dominating decentralized exchange (DEX) transactions. jpg.store, Cardano’s top NFT marketplace, accounted for 20% of DApp transactions, showcasing its stronghold in the NFT sector.

Stablecoins and NFTs Highlight Market Trends

Cardano’s stablecoin market cap grew 66% QoQ, reflecting the increasing adoption of assets like iUSD and DJED. However, NFT activity showed mixed signals. While average daily NFT trading volume in USD rose 86% to $78,900 due to ADA price gains, NFT sales volume and transactions saw slight declines.

Despite these challenges, Cardano’s infrastructure upgrades and active DeFi ecosystem signal strong fundamentals, positioning the network for further growth in 2025.