Massive Increase in this Cardano Metric: Bullish for ADA Price?

The latest Q4 report from Messari has shed light on Cardano’s growth and developments throughout the fourth quarter of 2023, experiencing considerable progress across various metrics.

According to Messari’s State of Cardano Q4 2023 report, Cardano’s TVL has risen by 166% quarter-over-quarter (QoQ) and 693% year-over-year (YoY), pushing Cardano’s ranking from 34th to 14th on DefiLlama.

Overall, the DeFi ecosystem in Cardano has grown steadily, with 33 protocols in total amassing over $330M in TVL.

State of @Cardano Q4

Key Update: Ecosystem growth came from both more established protocols like @MinswapDEX and newer ones like @Indigo_protocol.

QoQ Metrics 📊
– TVL ⬆️ 166%
– Stablecoin value ⬆️ 37%
– ADA ⬆️ 127%

Read the report for free 👇https://t.co/TVAdEwlY5p pic.twitter.com/rGZlYnWiyp

— Messari (@MessariCrypto) February 14, 2024

The report also highlights Cardano’s recent developments in ensuring network stability while offering scalability and high throughput, especially after the introduction of Hydra, a family of scaling protocols. Hydra operates as an off-chain mini-ledger facilitating transactions between a select group of participants, similar to popular state channels like Lightning Network.

Additionally, core infrastructure projects such as SanchoNet and Mithril underwent further development and testing, laying the groundwork for future innovation and scalability within the network.

ADA Among the Fastest-Growing Cryptocurrencies

ADA has demonstrated notable growth, surging by 127.2% in Q4, according to Messari data, turning ADA into the fastest-growing asset by the end of 2023.

Moreover, Cardano’s average daily transactions and daily addresses experienced a steady uptick, reflecting increased user activity within the ecosystem, and the ratio of transactions to active addresses has been on a continuous rise over the past year.

At the time of writing, ADA is switching hands at $0.60, with trading volume surging notably to $740M, a 33.25% increase in 24 hours. Likewise, most ADA token owners currently hold the asset at a profit.

The uptick in price and the addition of over 5000 smart contracts in the Cardano network have sparked discussions among analysts regarding ADA’s potential trajectory, especially if the asset could break to $1 before or after the Bitcoin halving.