According to CryptoPotato, the latest Q4 report from Messari has revealed significant growth in Cardano's total value locked (TVL) and ecosystem developments throughout the fourth quarter of 2023. The State of Cardano Q4 2023 report indicates that Cardano's TVL has increased by 166% quarter-over-quarter (QoQ) and 693% year-over-year (YoY), elevating Cardano's ranking from 34th to 14th on DefiLlama. The DeFi ecosystem in Cardano has expanded steadily, with 33 protocols amassing over $330M in TVL.
The report also emphasizes Cardano's recent efforts to ensure network stability while providing scalability and high throughput, particularly following the introduction of Hydra, a family of scaling protocols. Hydra functions as an off-chain mini-ledger, facilitating transactions between a select group of participants, similar to popular state channels like the Lightning Network. Core infrastructure projects such as SanchoNet and Mithril have also undergone further development and testing, laying the foundation for future innovation and scalability within the network.
Cardano's native token, ADA, has shown remarkable growth, surging by 127.2% in Q4, according to Messari data, making it the fastest-growing asset by the end of 2023. Additionally, Cardano's average daily transactions and daily addresses have experienced a steady increase, reflecting heightened user activity within the ecosystem, and the ratio of transactions to active addresses has consistently risen over the past year. Currently, ADA is trading at $0.60, with trading volume surging significantly to $740M, a 33.25% increase in 24 hours. Most ADA token holders now hold the asset at a profit. The rise in price and the addition of over 5000 smart contracts in the Cardano network have prompted discussions among analysts about ADA's potential trajectory, particularly if the asset could reach $1 before or after the Bitcoin halving.
