Cardano’s price went up by 2.5% in the last day to $0.398260, which was more than the market’s 1.5% rise. Since the stablecoin Djed based on Cardano came out last week, the price of ADA has gone up by 11% in the last two weeks and by 35% in the last 30 days.
The release of Djed has caused more people to want ADA, which is one of the main reserve tokens for the new algorithmic stablecoin. Because of this, Cardano has been used more often, and the total value locked (TVL) of the layer-one network has gone up by more than 100% since the beginning of January.
Indicators for ADA show that now is a good time for the cryptocurrency. Its 30-day moving average (in red) is close to its 200-day moving average, which shows that things are going well (blue). If the currency goes above its long-term average and forms a “golden cross,” it might go up even more.
| DATE | ADA | USD |
|---|---|---|
| Today | 01 | 0.3830288 |
The ADA’s relative strength index, which is shown in purple, has stayed close to 60. Since the RSI is currently bouncing back every time it goes down, it looks like it will be able to keep going up again.
As was already said, the introduction of the stable coin Djed (DJED) has been a big part of ADA’s success. Djed’s reserve has already taken 30.5 million ADA out of circulation, and over the next few days and weeks, this number is likely to keep going up.
In other words, there is more demand for ADA, but the number of people who have it is going down. Because of this, DJED has been going up recently, but it’s important to remember that it only has a $2 million supply right now, which means there is still a lot of room for growth.
As of this writing, Cardano’s TVL has gone from about $50 million on January 1 of this year to $108 million. This is partly due to Djed’s entry. This shows that Djed has made more people use Cardano, since the new stablecoin is already listed on the DEXs MuesliSwap and Minswap, which are based on Cardano.
For example, Djed will have an over-collateralization ratio of 400% to 800% and will be backed by a reserve of several cryptocurrencies. This plan is meant to protect Djed from sudden drops in the value of the coins that keep it going.
And the point is that Djed could be used by people outside of the Cardano ecosystem, since an upcoming upgrade to Cardano will make it more compatible with chains other than its own. This comes from the Bitcoin and Ethereum domains.
The announcement says that the upcoming update will “enable ECDSA and Schnorr cryptographic signatures to make it easier for developers to build cross-chain apps.” Djed could end up being used a lot because of this.
In a larger sense, Cardano might be used more often. With more than 1,100 apps and projects in development on its network and more than 110 projects already out in the world, its ecosystem is growing even though the market is down.
Cardano’s rise could pick up speed in 2023, though, because the market seems to be getting better and better.
Because of this, it’s likely that ADA will hit $1 by the middle of the year. Who knows where it will go from there, but some analysts think it will be worth about $5.30 in the long run.