Cardano Network Thrives: 254% Fee Revenue Growth as Transactions Rise 65%

In the fourth quarter of 2024, Cardano (ADA) experienced a substantial 126% increase in its price, elevating its market capitalization to $30.3 billion. This surge advanced ADA's circulating market cap rank from 11th to 9th place. The growth in both price and market capitalization coincided with the U.S. elections in November and a broader upswing in the cryptocurrency market.

According to Messari's latest [report](Cardano Network Thrives: 254% Fee Revenue Growth as Transactions Rise 65%), transaction fees denominated in U.S. dollars saw a remarkable 254% quarter-over-quarter rise to $1.8 million, marking a 95% increase year-over-year, driven by rising token prices and heightened transaction activity.

The average number of daily transactions on Cardano increased by 65% quarter-over-quarter, reaching 71,500 transactions. Similarly, the average daily active addresses climbed by 58% to 42,900. Amidst this increased activity, the average transaction fee in U.S. dollars rose by 80% to $0.23, while the fee in ADA slightly decreased by 2% to 0.34. Messari noted that the network successfully managed the increased transaction volume without significant alterations to native costs.

Cardano's average daily decentralized application (DApp) transactions decreased by 8% quarter-over-quarter to 14,300 in Q4. Minswap emerged as the most active DApp on Cardano, with Minswap, Liqwid Finance, and jpg.store leading transaction volumes. Minswap had over 200,000 traders and a total trade volume of $3.1 billion by the end of Q4. The network's decentralized exchange (DEX) space also saw a 271% quarter-over-quarter increase in average daily volume to $8.9 million, with Minswap, WingRiders, and SundaeSwap at the forefront. DEX trading volume increased by 40% compared to the previous year.

During Q4, Cardano's DeFi total value locked (TVL) in U.S. dollars rose by 13% quarter-over-quarter to $231.6 million. The DeFi diversity score, reflecting the number of protocols contributing to 90% of the network's TVL, grew by 13% to 9. Liqwid saw an impressive 141% increase in TVL, reaching $113.6 million, thereby overtaking Minswap as Cardano's leading protocol by DeFi TVL. Minswap's TVL also rose by 69% to $98.9 million.

Additionally, smaller protocols such as Splash Protocol and Aada experienced significant growth, with TVLs increasing by 253% and 105% quarter-over-quarter to $59.6 million and $30.2 million, respectively.

In the same quarter, the market capitalization of stablecoins on the Cardano network grew by 66% quarter-over-quarter. Among individual stablecoins, iUSD and DJED achieved market cap increases of 20% and 41% respectively. Meanwhile, MyUSD saw a moderate 17% growth, and USDM's market cap decreased by 5%.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.