Cardano demonstrated significant growth in decentralized finance (DeFi) activity during the third quarter of 2024.
Key metrics, including total value locked (TVL) and adoption of protocols like Liqwid and Splash, showed notable increases.
However, challenges persisted, with declining revenue and a drop in ADA’s market price.
Cardano’s DeFi Sector Sees Steady Expansion
Cardano’s DeFi ecosystem increased by 13.3% QoQ, TVL standing at $231.6 million.
This growth was a direct result of enhanced usage of key protocols, Liqwid and Splash, through which large contributions to the TVL value were made.
In seven days, Liqwid’s TVL increased by 77.2%, and Splash got a boost during the same period.
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The Chang Hard Fork has reached the first phase in the process, which essentially sets up decentralized on-chain governance in the network.
ADA holders are now more involved in the protocol’s decisions that solidify the ecosystem.
These continuities are in par with Cardano’s strategic vision of creating a decentralized financial system.
At the same time, Minswap was dominating in terms of contributions for the protocol, having $58.6 million in TVL as proof of Cardano’s ecosystem dominance.
New users and projects continue to choose Cardano because it has proven to itself as a credible ecosystem for the development of DeFi.
The growth in the TVL shows that there is a relentless public interest in the protocols traded in the spot market.
Everyone, starting from the developers and ending with the investors, rejoices in the network’s further development, meaning that everyone believes in its further growth.
Mixed Financial Performance Despite Ecosystem Growth
At the same time, the total value locked in the Cardano ecosystem increased from $287.5 million to $674 million.
However, the quarterly revenue in the company decreased by 31.2% and reached $0.51 million.
This drop speaks volumes about the fact that there is still much work that needs to be done to achieve sustainable network revenues in the face of stiff competition.
Moreover, the quarterly market price of ADA fell about 4.8% to $0.37.
The situation calls for enhanced measures to strengthen the ecosystem’s revenue and price, which have reduced over time.
However, the increase in the usage of decentralized finance demonstrates adaptability and increasing demand for Cardano’s decentralized solutions.
Moreover, the overall USDM, Cardano’s stablecoin, made massive progress, with the market cap rising by 145.5%.
Thus, the main issue of Cardano is not exclusive, as the larger market experiences shifting conditions of the market.
It has a relatively new and growing DeFi environment, which has the possibility of developing, especially if more users participate in the protocol.
In the next quarters, it is also important to look into the partnership and protocol rewards to enhance financial performance.
Ecosystem Milestones Highlight Progress and Challenges
In Q3, Cardano advanced its ecosystem across both governance and engagement while enhancing the user experience.
Today, stablecoins have gained significant market capitalization, such as USDM, based on the Cardano blockchain, increasing confidence in financial instruments on the network.
Programs like Minswap were still injecting meaningful percentage points of TVL to prove the versatility and composure of the ecosystem.
These achievements evidence Cardano’s strategic, long-term organisms, even if it faces short-term revenue headwinds.
These governance improvements, protocol creation, and increasing adoption place it firmly in the competitive space of DeFi.
Others, such as SundaeSwap and WingRiders also brought value to the ecosystems while providing more diversification to Cardano.
According to the roadmap outlined by Cardano, many of which focus on decentralization and security, it will serve as solid groundwork for additional updates on the network.
