Cardano Ends Q1 2025 with $1.1B Treasury, Rising Governance Participation, and Mixed On-Chain Metrics

Leading analytics platform Messari has released a new report on Cardano, highlighting key developments in the ecosystem in Q1 2025. One of the main highlights was Cardano's transition to decentralized governance, marked by the enactment of its on-chain Constitution on February 24, 2025. This represents a significant milestone in the Voltaire era , with CIP-1694 now fully implemented. Governance has officially shifted to the community through a structure involving Stake Pool Operators (SPOs), a Constitutional Committee, and over 1,220 active Delegated Representatives (DReps). ADA Sees Price Decline, Market Cap Shrinks Despite the major governance transformation, ADA experienced a challenging quarter financially. Its price fell by 22% quarter-over-quarter (QoQ) to $0.66, in line with a broader 19% decline in the crypto market. ADA’s circulating market cap dropped by 21% to $23.8 billion, though it retained its 9th-place ranking among crypto assets. Transaction activity also declined, with average daily transactions down 28% to 71,500, and network fees in USD falling 32% to $1.2 million.  However, the average transaction fee in USD rose 27% to $0.29, while the average fee in ADA rose only 1% to 0.34 ADA. Notably, this highlights the impact of ADA price volatility on transaction costs. Stablecoins Surge While DeFi TVL Contracts Meanwhile, Cardano’s DeFi Total Value Locked (TVL) fell by 29% QoQ to $319.3 million, underperforming the broader DeFi market, which declined by 26%. However, a contrasting trend emerged in the stablecoin sector. Cardano's total stablecoin market cap grew by 30%, reaching $30.2 million. This growth was led by the USD-backed stablecoin USDM, which increased by 40%, and the newly launched fiat-backed stablecoin USDA, which quickly reached a $7.2 million market cap. These contrasting trends in declining DEX activity alongside growing stablecoin adoption suggest a risk-off environment, where users prefer storing value in stable assets over engaging in active trading. Top DeFi Protocols Adjust to Market Conditions While TVL declined across major protocols, Cardano’s DeFi diversity score rose to 9. Minswap reclaimed the top spot with $77.4 million in TVL, overtaking Liqwid, which fell 38% to $70.3 million. Indigo, WingRiders, and Splash also experienced TVL declines but sustained active development and user engagement. DEX aggregator DexHunter maintained its lead in volume and introduced new features such as leveraged trading and a developer API to support further ecosystem expansion. Treasury Grows in ADA Terms, Declines in USD Cardano’s treasury balance increased by 5% QoQ to 1.7 billion ADA, though its value in USD declined 19% to $1.1 billion due to the drop in ADA’s price. With governance now in the community's hands, 20% of all network fees are allocated to the treasury. This serves as a key funding source for development initiatives voted on by DReps and other governance participants. By the end of Q1, Cardano had completed a fundamental transition in its decision-making process, transferring governance keys from IOG, the Cardano Foundation, and EMURGO to the community. Eight specialized Intersect committees now support on-chain governance actions. Essentially, Cardano is now one of the few blockchains operating with a live constitutional governance model, involving voters, SPOs, and elected representatives in ongoing decision-making. Despite market headwinds that suppressed token prices and activity, Cardano’s Q1 achievements point to growing maturity, laying the groundwork for a more resilient decentralized future.