Cardano's Stablecoin Djed launching soon, Will ADA prices pump?
Cardano momentum is building as the launch of the Djed stablecoin. ADA prices have yet to make a big move.
Dijed is an over-collateralized algorithmic stablecoin, Cardano DeFi TVL is increased by 50% this year, and ADA is used to back the minting of the dollar-pegged asset.
Djed has been developed by Cardano backers IOG and powered by Coti a layer 1 scalable enterprise network.
Djed stablecoin is planning to release this month, Djed is entering a crowded stablecoin market that already accounts for 13% of the entire crypto market cap and almost a third of the top ten assets.
And yes, $Djed is still on track for launching THIS month— Djed Stablecoin (@DjedStablecoin) January 14, 2023
On the border, Djed uses a similar formula to existing stablecoins like Frax. it uses collateral from ADA and a reserve coin called SHEN minted and burnt to preserve the dollar peg of Djed.
ADA is sent to the Djed smart contract in return for Djed, then acts as the balance when ADA prices fluctuate, Frax which is fractionally collateralized with USDC and FXS will be over collateralized with ADA.
According to Coti's Twitter post:
"Djed is over collateralized by 400% to 800% this means that it has 4 to 8 times more underlying value backing it than the total sum of Djed minted."
$DJED on mainnet is imminent. Expect a massive increase in #Cardano TVL this month @COTInetwork also released their 2023 roadmap and will become larger than ever— Subcritical (@SubcriticalTV) January 17, 2023
The Future for #COTI and Cardano is looking bright pic.twitter.com/eJFcxaTwmr
The launch will likely boost the total value locked on the Cardano ecosystem and potentially ADA prices.
Cardano's DeFi TVL has already been on a tear this year. it is right now just shy of $100 million a 50% rise since the beginning of 2023 Cardano DeFi TVL is currently at its highest level since early October.
Ecosystem dApp has also increased the leading dApp on Cardano at the moment is the jpg. store marketplace followed by the Minswap DEX.
Last epoch #Cardano dapps sorted by transaction numbers.— Dapps On Cardano (@dappsoncardano) January 17, 2023
More #ADA dapps stats on:https://t.co/Z6Cksro0cA pic.twitter.com/HEeNUErEI1
The live Cardano price today is $0.346666 with a 24-hour trading volume of $311,108,294. Cardano is down 1.45% in the last 24 hours. The current CoinMarketCap ranking is #8, with a live market cap of $11,980,653,285. It has a circulating supply of 34,559,640,901 ADA coins and a max. supply of 45,000,000,000 ADA coins.