Cardano experienced a rise in transactions as several upgrades were implemented earlier this year, which attracted both users and developers to the network.
The amount of data stored in blockchain blocks during the second quarter increased to 50%, up from under 40% in the first quarter. In May, it reached its highest point at 81%.
These indicators typically signal a potential increase in token prices, as they demonstrate growing demand and usage.
According to a report from analytics firm Messari, Cardano’s blockchain activity showed growth in both the value locked and transactional metrics during the quarter. This increase was attributed to technical enhancements and a surge in developer interest.
Furthermore, Messari reported that decentralized exchange Minswap experienced significant absolute growth, while various new decentralized applications (dapps) also contributed to the overall increase. The report, commissioned by Cardano developer Input Output, compared second-quarter developments with first-quarter figures.
Despite transaction activity growing, the number of active daily users decreased by 4%, marking the fourth drop in address activity in the last five quarters.The report highlighted that the ratio of transactions to active addresses has been steadily increasing over the past five quarters, indicating that the average user is now more engaged than before.
In the second quarter, the Transaction Active Address ratio was 1.19, reflecting a 6.1% increase QoQ and a 13.2% increase YoY. During the quarter, the blockchain load, which measures the amount of data in blocks over a specific period, increased from under 40% to 50%, reaching a peak of 81% in May.
DefiLlama data revealed that approximately $175 million worth of tokens were locked on Cardano as of Monday, the highest level this year but still 50% below the all-time peak of $340 million recorded in May 2022.
Significant Cardano Upgrades
Cardano has experienced significant improvements this year, including a change to enhance the network’s smoothness by reducing epoch transitions, which are time periods lasting 432,000 slots (one second each). During these epochs, ADA tokens are staked, potentially increasing their demand due to more lucrative block rewards.
In March, a noteworthy feature on Milkomeda enabled Cardano users to access EVM smart contracts using any ADA wallet, expanding the ecosystem’s usefulness.
The Ethereum Virtual Machine (EVM) is a virtual computer where Ethereum accounts and smart contracts reside, allowing developers to create decentralized applications (dapps) using Solidity, the computer language used on Ethereum, without the need for additional toolkits or learning a new language.
These applications can be exclusively utilized with Cardano tokens instead of Ethereum’s native token, ETH, which enhances the tokens’ usefulness for their holders.