- Cardano’s new stablecoin Djed could be a game changer.
- Cardano development activity has increased since early 2023.
ethereum [ETH] We may face stiff competition in 2023. Cardano [ADA] Investors await the launch of Djed, the first algorithmic stablecoin on the network.
The official Twitter handle of the stablecoin is announced Early on January 14th, it was announced that the long-awaited launch would take place in January 2023.
yes, $ grandpa is on track to launch this month 🚀
— Djed Stablecoin (@DjedStablecoin) January 14, 2023
In 2021, Cardano developer Input Output HK (IOHK) entered into a joint partnership with fintech platform COTI to build and issue Djed, the network’s stablecoin.
read cardano [ADA] Price Forecast 2023-24
Cardano stacks up its arsenal
Every Coty blog, Djed is an over-collateralized algorithmic stablecoin pegged to the US dollar. It is backed by Cardano’s native coin ADA and uses SHEN as a reserve currency to offset the impact of ADA price volatility.
Along with this, the developer will also roll out Djed Pay, a payment app that allows retailers and non-profits to accept Djed as a payment method.
Interestingly, the CEO COTI GroupShahaf Bar-Geffen said In 2021, Djed could be used to settle transaction fees on the Cardano platform in the future. It is worth noting that no specific update was provided on this point and no one at Cardano has confirmed this.
Will Cardano’s bullish rally continue?
Meanwhile, ADA continues its bullish run, clearing the post-FTX cloud and posting a nearly 35% gain from last month. At the time of writing, the price faced resistance at 0.347, despite a 25% drop in trading volume. coin market capitalization.
The indicators suggested that the massive buying pressure seen last week had started to wane.The Relative Strength Index (RSI) dropped from its highs, while On Balance Volume (OBV) recorded a similar trajectory. bottom. That said, market sentiment on the coin remained bullish.
Source: Trading View
Well, development activity has been rising aggressively since the beginning of 2023, reassuring the Cardano community about their efforts to strengthen the network.
Other on-chain indicators responded positively to Djed’s launch announcement on January 14th. Since then, however, activity has subsided. The frequency with which the coin moves on the network dropped after he recorded 3.25 on the day of the announcement.
After garnering a lot of attention on January 14th, so did the social buzz.
Source: Santimento
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Unlike other volatile cryptocurrencies, stablecoins do not float freely, which provides stability, especially during bear markets. Stablecoin dominance, or basically share of the cryptocurrency market, reached almost 17% at the peak of last year’s cryptocurrency crash.
Source: Blockworks Research
