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Cardano Monthly Analysis – April 2022

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Cardano (ADA) holders and investors were arguably the most dispirited of the bunch going by the price swings of the native token across April. ADA remained below the psychological $1.00 mark for the better part of the month, unable to cross $0.90 in the last week. This unimpressive performance was not an isolated incident affecting Cardano, rather a reflection of the general cryptocurrency market.

The poor run of ADA in the market last month, however, doesn’t compare to what May has been thus far. For context, ADA didn’t fall below $0.74 in April but has already slumped to a multi-month low of $0.65 less than two weeks into May. Glaringly, the course Cardano has traced in May isn’t entirely unexpected, looking at the performance it posted in April.

Here’s the picture various metrics painted last month:

Market Metrics

Market capital

The market capital of the Cardano sought new lows in the proceeding days across the stretch of April. The only significant growth in the total circulating value was noted within the first four days of the month. The figure increased to a monthly peak of $39.20 billion on April 4, up from a start of $37.01 billion on the first day of the month.

Cardano market capital across April

Afterward, the market capitalization established continued drop-offs through to the end of the month, reaching as low as $26.54 billion, more than $10 billion off the monthly apex. Notably, the summit traced on April 4 was a culmination of consistent growth through the second half of March.

Supply

Circulating supply and minted supply

On April 1, there was a circulating supply of 34,035,438,087 ADA as per Cardano Blockchain Insights. At the time, this token size indicated a 75.63% minted proportion of all tokens.

Cardano (ADA) supply in April

Over the course of the month, the circulating supply increased and reached 34,091,275,165 on April 30. This represented an increase of 55,837,077 tokens – 3,338,871 more than the increase in March.

Blockchain and Network Metrics

Daily transactions

The most noticeable change in the count of daily transactions in April came between April 10 and April 12. There were 134,431 transactions on the latter date, up from 77,268 transactions on the former, reversing the network’s falling pattern since March 18. Notably, the April 12 count was the best all month, and the numbers logged three days earlier (76,539 on April 9) were the least.

Total transactions

The total transactions count in April showed consistent day-by-day growth, reflecting the historical pattern based on this metric. 36,361,809 transactions were completed on the network on April 1, which grew to 39,451,477 on April 30. The increase by a total of 3,089,668 transactions in April was lower than the previous month, which saw 3,266,251 additional transactions.

Cardano transactions in April

Daily active address

The number of 24-hour active addresses logged on Cardano extended a falling pattern that has plagued the network since late January. For the first month this year, the number remained below 140,000 daily active addresses.

The number of active addresses was 116,352 on April 1 and grew in the early days of the month, establishing a high of 126,645 active addresses on April 12. Preceding the day with the highest activity in April was the monthly lowest – 80,015 transactions on the network.

Average transaction fee (USD)

The average transaction fee on the Cardano network peaked on April 5, reaching $0.54, before proceeding with steep drops that defined a generally falling pattern for the whole month. Notably, the average transaction fee didn’t fall below $0.31 throughout the month.

ADA Wallets

Total wallets

The total number of wallets on Cardano grew almost consistently throughout the month, bar the April 17 to April 20 steeper ascent. There was a rapid boom of wallets– 24,062 new ADA wallets across the four days.

Across the whole month, the total number of wallets grew by 3.20%, from 3,195,821 on April 1 to 3,298,113 on April 30. The growth in April was more significant than in March, across which the wallets increased by 2.37%.

Cardano wallet, staking and volume statistics in April

New wallets per day

In April, the number of new wallets per day grew, then dipped. On the first day of the month, there were 2,376 wallets created on Cardano. Following a period of growth in successive days, the number of new wallets per day reached 8,246 on April 20.

However, three days later, on April 23, the number of additional wallets slumped to a monthly low of 1,523. The monthly low was more than five times lower than the peak count for the month.

Volume

Total volume and Adjusted Volume

The total spot trading volume recorded across April printed a generally falling pattern. The apex was set early in the month –$64.59 billion reached on April 5, pushing up from $48.88 billion on April 1.

Thereafter, it was a crash all the way down to the month-long low of $20.98 billion on April 25, less than half the peak figure.

The adjusted volume – deducts transactions where the sending address also appeared in the receiving address from the total volume – charted a pattern resembling that of the transaction volume. The adjusted volume touched an apex of $64.17 billion on April 5 and a monthly low of $20.91 billion on April 25.

DeFi Performance

Total Value Locked

April was, overall, not one of the best performing months for the Cardano network, even with the window of observation reduced to just 2022. February saw a $39.01 million gain in TVL, and in March, the figure surged by $165.25 million to end the month with a TVL of $289.31 million. April overturned the positive trend.

Cardano TVL across April

The total value locked (TVL) of the Cardano network extended the falling pattern established after the March 24 peak of $326 million. The TVL was last observed on April 30 at $194.96 million – down 20% from the figure at the start of the month. Before hitting this low, the TVL previously touched $196.79 million on April 12.

Minswap’s reversed traction

Critical to the growth of Cardano’s TVL before April was the mainnet launch of decentralized exchange protocol Minswap on March 9. However, as the lead protocol, it capitulated and lost nearly half the value in the one month ending April 29 – -38.98%. SundaeSwap fell to third following the rise of fellow automated market maker decentralized exchange WingRiders, which went live on the mainnet on April 12.

To learn more about Cardano visit our Investing in Cardano guide.

Sam is a financial content specialist with a keen interest in the blockchain space. He has worked with several firms and media outlets in the Finance and Cybersecurity fields.

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