Cardano (ADA) Transaction Fees Surge 254% QoQ as ADA Rallies

Cardano witnessed substantial growth in DeFi and stablecoin activity during Q4 2024, reflecting increased adoption as TVL, transaction volume, and network engagement expanded.

ADA Price and Market Cap Soar

Cardano (ADA) surged by 126% in Q4, propelling its market capitalization to $30.3 billion. This growth pushed ADA’s circulating market cap ranking from 11th to 9th. The rally coincided with the U.S. election in November and broader cryptocurrency market gains.

Messari’s latest report highlights that Cardano’s transaction fees in USD jumped 254% QoQ to $1.8 million, marking a 95% YoY increase. This spike was fueled by rising token prices and heightened transaction activity.

DeFi and DEX Activity on the Rise

Cardano’s average daily transactions increased by 65% QoQ to 71,500, accompanied by a 58% rise in daily active addresses to 42,900. The average transaction fee in USD climbed 80% to $0.23, though the fee in ADA dropped 2% to 0.34. Messari noted that the network efficiently handled increased transaction loads without significant changes in native costs.

Despite overall growth, Cardano’s daily decentralized application (Dapp) transactions declined 8% QoQ to 14,300 in Q4. Minswap, Liqwid Finance, and jpg.store led transaction volumes, with Minswap remaining the most active Dapp.

As the leading decentralized exchange (DEX) on Cardano, Minswap recorded over 200,000 traders and a total trading volume of $3.1 billion by Q4’s end. Cardano’s average daily DEX volume soared 271% QoQ to $8.9 million, with Minswap, WingRiders, and SundaeSwap dominating. DEX trading volume also saw a 40% YoY increase.

Cardano’s DeFi TVL in USD rose 13% QoQ to $231.6 million. The DeFi diversity score, measuring the number of protocols contributing to 90% of TVL, also grew 13% to 9%. Liqwid’s TVL surged 141% to $113.6 million, surpassing Minswap as Cardano’s top DeFi protocol. Minswap’s TVL climbed 69% to $98.9 million, while smaller protocols like Splash Protocol and Aada saw remarkable QoQ TVL increases of 253% and 105%, reaching $59.6 million and $30.2 million, respectively.

Stablecoin Market Sees Notable Expansion

Cardano’s stablecoin market capitalization increased by 66% QoQ in Q4. Among individual stablecoins, iUSD and DJED recorded market cap growth of 20% and 41%, respectively. MyUSD experienced a more modest 17% increase, while USDM saw a 5% decline.

This strong performance across DeFi, DEX, and stablecoin sectors underscores Cardano’s growing presence in the crypto ecosystem as adoption accelerates.

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