Compared to the market, which saw a 1.5% increase, Cardano’s price grew by 2.5% in the most recent day to hit $0.398260. The price of ADA has climbed by 11% in the previous two weeks and by 35% in the last 30 days since the launch of the Cardano-based stablecoin Djed last week.
The launch of Djed has caused a spike in demand for ADA, one of the main reserve tokens for the new algorithmic stablecoin. The Layer-1 network’s total value locked (TVL) has increased by more than 100% since the start of January as a result of Cardano being used more regularly.
Cardano’s price prediction for today is DATE ADA USD Today 00.3943525.
Related: Cardano Price Prediction: ADA Price as of February 6, 2023
The indicators for ADA imply that this is a favourable time for the cryptocurrency, as its 30-day moving average (red) is getting close to its 200-day moving average (blue). If the price of the currency rises above the longer-term average and forms a golden cross, further increases may be in store.
The ADA’s relative strength index (purple) has maintained a close reading of 60 throughout this time. The RSI appears to be in a position to continue climbing once more because it is now bouncing back after each dip.
As was already mentioned, the launch of the Djed (DJED) stablecoin has been a key element in ADA’s success. 30.5 million ADA have already been taken from circulation by Djed’s reserve, and this amount will likely continue to rise over the coming days and weeks.
In other words, there is a declining supply of ADA while the demand for it is increasing. The recent rallies are a result, but it’s important to keep in mind that DJED now only has a $2 million supply, indicating that there is still the possibility for substantial growth.
Due in part to Djed’s arrival, Cardano’s TVL has climbed from approximately $50 million on January 1 of this year to $108 million as of this writing. The fact that the new stablecoin is already listed on the Cardano-based DEXes MuesliSwap and Minswap demonstrates how Djed has encouraged further Cardano use.
It’s possible that Djed’s positive impact on Cardano adoption is just beginning. The cryptocurrency market has clearly been crying out for a solid stablecoin since Terra’s collapse in May, and it seems that Djed satisfies that desire.
For instance, Djed is backed by a reserve of various cryptocurrencies and will have a 400% to 800% over-collateralization ratio. Such a plan is intended to protect Djed from sudden declines in the value of the currencies that underpin it.
And the point is, there’s a very high potential that Djed might draw use from beyond the Cardano ecosystem given that an impending Cardano upgrade is planned to boost its cross-chain compatibility. The Bitcoin and Ethereum domains are included in this.
The upcoming update will specifically “enable ECDSA and Schnorr cryptographic signatures to make it easier for developers to construct cross-chain apps,” according to the announcement. Djed might therefore wind up seeing a lot of use.
Cardano might be used more broadly in some sense. In the midst of a bear market, its ecosystem has already been growing, with more than 1,100 apps and projects presently under development and more than 110 projects that have already seen release.
Related: ETH, BTC, and Cardano Price Predictions for January 31, 2023
But given that the market appears to be steadily recovering, Cardano’s ascent may actually accelerate in 2023.
The possibility that ADA will reach $1 by the middle of the year is therefore high. Who knows where it will go from there, though some analysts have set a long-term target price of $5.30 for the coin.
