Cardano Q2 trading volume increased by 49%, investors' bullish sentiment on ADA increased

This article comes from: CoinDesk, the original author: Shaurya Malwa, compiled by: Odaily Planet Daily Husband How

Earlier this year, Cardano underwent several upgrades that attracted users and developers to the network, resulting in an increase in Cardano transaction volume.

Analytical firm Messari’s report pointed out that by comparing the development of the second quarter with the first quarter, Cardano’s on-chain value locked and transaction volume indicators have achieved growth, which is due to technical improvements and an increase in the number of developers. Among them, Minswap, a decentralized trading platform, saw the most significant growth, but other new DAPPs also contributed to the growth.

The report noted that despite the growth in transaction activity, the number of daily active users fell by 4%, the fourth decline in address activity in the past five quarters.

While the number of active users has declined, the ratio of transactions to active addresses has grown steadily over the past five quarters, indicating that the average user is now more active than before. In Q2, the transaction/active address ratio was 1.19, up 6.1% quarter-over-quarter and 13.2% year-over-year.

According to DefiLlama data, as of Monday, the value of Cardano locked tokens was US$175 million, the highest level this year, but still less than 50% of the historical peak of US$340 million reached in May 2022.

These phenomena are due to the key upgrade of Cardano this year.

The upgrade, which went into effect in June, makes the blockchain smoother for users by reducing epoch transitions. An epoch is a period of time on Cardano, with each epoch lasting 432,000 slots, each of which is one second. During these epochs, ADA tokens are pledged, Cardano network generates new blocks, and operators will receive block rewards faster, thereby increasing token liquidity.

In March, Milkomeda’s new functionality began allowing Cardano blockchain users to use any Cardano wallet to access EVM smart contracts, expanding the usefulness of the ecosystem. The new feature will allow ethereum application developers to build on the Cardano network using Solidity without having to install new toolkits or learn a new computer language.