According to a recent analysis by Messari, the Cardano ($ADA) ecosystem experienced substantial growth and development in Q2 2023. The network has made impressive strides, from the increase in stablecoin value to the development of decentralised finance (DeFi) and non-fungible tokens (NFTs)
Key findings from the research include a 34.9% QoQ increase in the entire stablecoin market cap on Cardano, hitting $13.5 million, with Indigo Protocol leading the stablecoin and synthetic asset issuance.
In Q2, 47.4% of TVL dominance was attributable to protocols developed over the previous six months or less. Cardano’s TVL (USD) increased 9.7% QoQ, climbing from 34th to 21st in the overall ranking of TVL across chains. Daily dapp transactions on average increased by 49% QoQ, with Minswap driving the increase.
With a TVL of $48.8 million at the end of Q2, Minswap continued to rule the DeFi market in terms of liquidity. Growing were also new protocols as VyFinance, Liqwid Finance, Djed, and Optim Finance. The two primary stablecoin issuers are Indigo and Djed. In Q2, Indigo saw a total volume of $3.6 million in liquidations from 870 liquidations.
The entire quarterly trading volume fell 41.9% QoQ to $46.2 million, a decrease in NFT transactions of 35.7% QoQ. Among notable initiatives was the UN Refugee Agency’s use of NFTs for charitable purposes. With the launch of Milkomeda C1 in early 2022, Cardano gained EVM compatibility, and the number of daily unique contract callers increased by 279.9% QoQ due to the expansion of the gaming industry.
With Fund 10 distributing 50 million ADA (about $14 million) among 13 Challenges, Project Catalyst, a decentralised fund for creative enterprises, funded 1,163 submissions in nine rounds. Tools are being created by Cardano developers to support languages like Marlowe, Aiken, Plu-ts, Helios, and OpShin.
IOG unveiled a toolbox for creating unique sidechains, and Wanchain announced its bridge on the Cardano preview testnet. A crucial milestone in scaling solutions was made in March 2023 when the Hydra family of scaling protocols launched its first Head on the Cardano mainnet.
With DeFi taking centre stage in Q2, Cardano’s ecosystem is growing quickly. Additionally to the emergence of new protocols, the continued presence of the current ones is being established. The development of Layer-2 solutions, NFTs, gaming, and stablecoins shows how the ecosystem is thriving and changing.
Cardano’s future seems bright and full of potential for innovation and expansion with Project Catalyst Fund 10 in development and ongoing development in other field