What to know:
- Cardano Foundation CEO Frederik Gregaard stated that real-world use cases are considered as a pivotal measure for adoption, aiming for less than 50% on-chain “value transactions.”
- The ADA token was notably referenced by U.S. President Donald Trump as part of the nation’s crypto reserve.
- Gregaard clarified the financial dynamics amongst the Cardano Foundation, Emurgo, and Charles Hoskinson’s IOG.
Trading volumes for Cardano’s ADA token have surged recently, achieving around $720 million in daily averages during February, while March figures surpassed $1.4 billion.
This trend follows a social media mention by Donald Trump, who included ADA among the tokens for the U.S. strategic crypto reserve.
Despite the mainstream attention, Cardano has quietly climbed the ranks since its inception in late 2017.
Adoption metrics
The ADA token’s market capitalization is $25.6 billion, but the noteworthy aspect lies beneath; Cardano’s blockchain boasts over 5 million unique wallets and 1.3 million delegators, with thousands of wallets created daily.
The total value locked (TVL) stands at $329 million; however, Gregaard emphasizes that this metric is often overstated within crypto communities.
He also highlighted non-value transactions like decentralized ID minting, metadata tracking, and document recording as indicators of real-world activities on blockchain.
For instance, Cardano’s recent collaboration with Veritree resulted in the donation of over 1 million ADA tokens to plant an equal number of mangrove trees in Kenya, with every transaction audited and logged on the blockchain.
A partnership announced with SERPRO, Brazil’s largest state-owned IT company, aims to promote blockchain adoption in South America, involving training for around 8,000 employees.
Cardano maintains a perspective different from Solana and various layer-2 networks that focus on TVL and speculative trends surrounding NFTs and memecoins.
The TVL on Solana surged from $2.2 billion to over $10 billion in 2024, whereas Cardano’s value increased modestly from $445 million to $537 million in the same timeframe.
DeFi on Cardano
While the CEO prioritizes real-world applications, Cardano is home to a vibrant DeFi ecosystem. The native DEX, Minswap, recorded a trading volume of $3.4 billion this month, with December nearing $271 million.
Numerous lending protocols exist, including Liqwid, Lenfi, and Optim Finance, with a collective lending sector TVL exceeding $116 million.
Gregaard’s mission is to restrict financial transactions to under 50%, aiming to align with Cardano Foundation’s non-profit values, even if it affects growth opportunities in hype-driven markets like meme-based cryptos.
Cardano Foundation vs Hoskinson vs Emurgo
Fulfilling this mission presents challenges due to the operation of three principal entities: the Cardano Foundation, Charles Hoskinson’s IOG, and Emurgo.
The tension predominantly arises from the two commercial entities contrasting with the Foundation’s non-profit orientation. Gregaard added, “The aim of having a non-profit was to optimize decisions over the long term, unlike short-term decision-making.”
Notably, Gregaard remarked about the non-monetary collaborations with both commercial entities, stressing that they jointly sponsor events while highlighting distinct governance strategies.
