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▲ Cardano (ADA)/AI-generated image
Cardano (ADA), despite an $8.2 billion market capitalization, only generated $352,000 in fee revenue this year, facing dual pressure from stagnant ecosystem growth and token weakness.
According to financial media outlet Benzinga on May 30 (local time), Cardano, built by Charles Hoskinson, has continued its sluggish performance this year. Based on DeFi Llama data, Cardano only generated $352,000 in fee revenue this year, with Q1 fee revenue at $238,000, the lowest since Q4 2020.
Cardano's fee revenue is significantly lower compared to major blockchain networks. Hyperliquid (HYPE) earned $336 million this year, Justin Sun's Tron (TRX) earned over $1.3 billion, and Tether recorded $2.7 billion. Cardano network's peak fee revenue was $4.2 million.
Cardano's DeFi ecosystem also continues to shrink. Cardano's Total Value Locked (TVL) has decreased to $128 million, while Ethereum (ETH) holds over $43 billion in assets. The trading volume of Cardano-based decentralized exchanges also fell from $408 million in Q4 last year to $222 million in Q1 this year.
The decline in user activity is also clear. Benzinga reported that Cardano's active addresses dropped from 15.1 million in Q4 2021 to 1.6 million in Q1 this year. In the real-world asset tokenization sector, which Cardano aimed to enter, Cardano's assets based on RWA aggregation were zero, while Ethereum secured over $16 billion in tokenized assets.
Hoskinson and the Cardano team integrated with the tier-1 oracle network Pyth Network in December last year to expand activity and also launched Midnight, a zero-knowledge-based privacy network. Midnight's token market capitalization exceeded $670 million, but Cardano fell by 65% in the last 12 months, showing a clear gap with Hyperliquid, which rose by 86% during the same period.
*Disclaimer: This article is for investment reference only and is not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*
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