Cardano (ADA) is making remarkable headway in the decentralized finance (DeFi) and stablecoin arenas, even though it faced some hurdles in the third quarter of 2024. Recent insights from a report by blockchain analytics firm Messari reveal a noteworthy boost in the network’s Total Value Locked (TVL), which rose by 19% from the previous quarter, reaching a commendable $620 million. This increase reflects a growing faith and activity within Cardano’s DeFi offerings.
The surge in Liqwid, a decentralized application (DApp) on the network, has been particularly impressive, with its TVL skyrocketing by 77.2%, underscoring the platform’s climbing popularity and utility on Cardano. Moreover, the stablecoin market on Cardano has also seen expansion, with the total stablecoin market cap increasing by 5.4% to hit $20.7 million. Notably, newer entrants like USDM from USDM Official have experienced outstanding growth, with their market cap jumping by a staggering 145.5% to $7.9 million. This rapid growth hints at a vibrant and dynamic stablecoin ecosystem emerging within Cardano.
Adding to the excitement, the Cardano ecosystem has welcomed new applications such as Rocket by JPG Store and Snek by Splash Protocol, which serve functions akin to token launching and trading, thereby enriching the diversity and usability of Cardano’s DeFi landscape.
However, the journey has not been without its bumps. During Q3, Cardano observed a drop in average daily decentralized application (dApp) transactions, which fell by 54.2%, alongside a 41.4% decrease in daily DEX volume. These downward trends mirror broader market movements but do not overshadow the positive strides in DeFi and stablecoin initiatives.
Despite these challenges, the Cardano community remains actively engaged in the platform’s ongoing development. A highlight of this engagement was the successful completion of the Chang Hard Fork’s first phase in early September, which was instrumental in transitioning Cardano towards a fully decentralized governance model. This evolution empowers ADA holders with increased influence over the future of the network.
Looking ahead, Cardano is gearing up for significant governance enhancements with the rollout of Plan 529, also referred to as Chang 2, which sets the groundwork for the upcoming Plomin hard fork. This upgrade aims to fortify governance and network capabilities even further.
Charles Hoskinson, the founder of Cardano, has expressed his ambition for Cardano to emerge as a pioneer in community-driven on-chain governance by 2025. His vision includes establishing a dynamic constitution that empowers community members while transforming the network into a fully decentralized autonomous organization (DAO). Innovations centered on scalability and interoperability are also anticipated to position Cardano at the forefront of decentralized finance, effectively bridging traditional financial systems with the blockchain.
In summary, while 2024 has seen its share of challenges that impacted ADA’s market cap rank—dropping to 11th position—the cryptocurrency is experiencing a remarkable resurgence. Notably, in November, ADA soared by approximately 280%, reclaiming the 9th position in market capitalization, proving that Cardano’s foundations are solid and its future holds promise.
