Cardano Q3: Mixed Performance Ahead of Major Governance Shift

Cardano, the proof-of-stake blockchain platform, showed mixed results in Q3 2024, with declining transaction metrics but growing DeFi activity, according to the latest Messari report.

The network’s most significant development was the Chang Hard Fork implementation, setting the stage for decentralized governance.

Network Performance and Financial Metrics for Cardano

Daily transactions dropped 15.9% to 43,200, while network revenue fell 31.2% to $0.51 million compared to the previous quarter. The native token ADA experienced a 4.8% price decrease to $0.37, causing its market position to slip from 10th to 11th place.

Despite these declines, the network’s treasury maintained a healthy balance of 1.55 billion ADA, worth approximately $622.92 million.

Apart from that, the network’s DeFi sector emerged as a bright spot, with total value locked (TVL) growing 13.3% to reach $231.6 million, per the Messari report.

Leading DeFi protocol Liqwid saw impressive growth, with its TVL surging 77.2% to $47.1 million. The stablecoin market showed modest expansion, increasing 5.4% to $20.7 million, primarily driven by USDM’s remarkable 145.5% growth to $7.9 million.

Key highlights from the ecosystem include:

• Minswap, the network’s leading DEX, introduced V2 upgrades with enhanced features like automatic swap routing
• Three new gold-backed tokens announced their launches: Kinka Gold, TVVIN Gold, and Finest Gold
• Project Catalyst’s Fund12 concluded with 258 funded proposals worth 46.5 million ADA
• The network reduced voting requirements from 450 ADA to 25 ADA to encourage broader participation

The Chang Hard Fork, implemented on September 1, 2024, marked a crucial step toward Cardano’s Voltaire era.

This upgrade introduces a technical bootstrapping phase for decentralized governance, allowing ADA holders to participate in network decisions through Delegate Representatives (DReps).

The process requires a 500 ADA deposit for DRep registration and will enable token holders to influence technical changes and treasury withdrawals.

Looking ahead, the Cardano community anticipates the completion of the Chang Hard Fork’s second phase, which will fully activate on-chain governance. The network is also expanding through Partner Chains, with developments like Midnight’s testnet launch offering privacy features through zero-knowledge proofs.

These developments signal Cardano’s ongoing evolution toward a more decentralized and feature-rich blockchain ecosystem.