Cardano has experienced a notable increase in decentralized application (dapp) transactions, highlighting the thriving growth of its ecosystem.
According to a report by crypto research firm Messari, the average daily dapp transactions on Cardano had risen by an impressive 49% Quarter-over-Quarter (QoQ). This activity surge was driven by various factors, including introducing new dapps and enhanced infrastructure within the Cardano ecosystem. As per the report, among the standout contributors to this growth was Minswap, an automated market maker (AMM), which experienced substantial growth, bolstering the overall increase in dapp transactions.
Furthermore, the Total Value Locked (TVL) in USD on Cardano exhibited a robust upward trajectory, marking a 9.7% QoQ rise and an astonishing 198.6% Year-to-date increase. Cardano’s ascent in TVL ranking across all blockchain networks was equally remarkable, moving from the 34th to the 21st spot.
One of the biggest contributors towards this growth has been the development of Hydra Head, a layer 2 scaling protocol for Cardano. The innovation aimed at increasing transaction speeds and lower costs has attracted a lot of attention from creators who continue to build. Moreover, the continued efforts in sidechain development, notably by projects like Milkomeda C1, Midnight, Wanchain, and IOG’s sidechains team, have also enhanced interoperability and paved the way for new applications within the broader Cardano landscape.
Cardano has made significant strides in the past year, with key milestones such as the Alonzo hard fork enabling smart contracts on the network. This set Cardano apart in the competitive smart contract network space by entering markets like DeFi and NFTs. Last week, Mithril, an innovative stake-based signature protocol aimed at elevating the network’s speed and effectiveness through enhanced node synchronization efficiency, was also formally introduced on the Cardano mainnet.
That said, with a diverse range of dapps, improved infrastructure, and the continual pursuit of enhanced scalability, Cardano stands poised to make a significant impact in the broader blockchain industry. This is so, especially considering that ADA’s utility extended beyond price speculation to settling network fees, stake pool registration, and staking to secure the network.
Meanwhile, despite the developments, ADA’s price and market cap continues to experience fluctuations. Interestingly, however, the cryptocurrency has maintained a resilient performance, with a 12.0% YTD increase. ADA was trading at $0.29 at press time, down roughly 0.40% in the past 24 hours.