Cardano NFTs become the third largest NFT protocol by trading volume

Cardano is now the third largest nonfungible token (NFT) protocol by trading volume, according to a report from blockchain and decentralized apps (dapps) research firm DappRadar.

The network’s total NFT volume reached $191 million in the 30-year period ending September 30, trailing only EthereumETH
and SolanaSUN
. Ethereum, the network behind the most popular NFT protocol (ERC-721), raised $338.21 million, while Solana brought in $116.07 million in NFT volume in the same 30 days, according to data from The Block. (DappRadar did not provide data for Ethereum or Solana).

Cardano’sADA
largest NFT marketplace saw a 40% increase in trading volume this quarter, reaching $11.2 million on the platform alone. Yet none of the top 10 markets ranked by DappRadar offer Cardano NFTs, limiting their availability to those outside the blockchain ecosystem.

The increase in trading volume is largely attributed to the network’s Vasil update, which went live on September 22 after a series of delays and increased the network’s operational capacity while reducing transaction times. The update kick-started the launch of Plutus v2, the network’s smart contract language, which made it easier for developers to build on-chain.

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Cardano dapps “experiences huge increases in user engagement” – decentralized exchange Minswap saw a 21% gain in unique active wallets in the last 30 days and JPG Stores rose 17%, according to DappRadar’s report.

Although the Ethereum merger is the shining star for blockchain and protocol updates in the second half of the year, it was Cardanos that had perhaps the most tangible results, with network transactions increasing to 82,880, the largest number since May, according to the report. However, network transactions have only increased over the past 15 days, peaking at 108,781 on October 25, according to Cardanoscan. Network activity had decreased significantly in June, reaching an all-time low as the Vasil update was continually pushed back from the first June date.

But the path for Cardano from here is not easy. Total value locked (TVL), a common measure of chain size, is minimal compared to rivals Ethereum and Solana. Cardano network transactions are only a fraction of Ethereum’s, which weigh in at a million a day according to data from Etherescan.

While Cardano is the preferred choice for large projects due to its “scalability, interoperability, and sustainability,” according to a blog post by DappRadar, its $66 million TVL is minuscule compared to Ethereum’s $31.4 billion and Solana’s $955.5 million.