Cardano Team Working Towards Releasing Two Stablecoins in 2023 as Blockchain TVL Surges
Cardano (ADA) is working towards introducing two new stablecoins in the coming months. These new tokens are reportedly geared towards delivering better stability to stablecoins.
USDA and DJED
According to the Cardano team, the two stablecoins include the USD-pegged USDA, a fully regulated and pegged stablecoin, and the over-collateralized algorithmic stablecoin DJED.
The USDA is a USD-pegged stablecoin developed by Cardano's founding organization, Emurgo, and will reportedly anchor lending and borrowing, crypto-backed card payments, and bridge traditional finance (TradFi) and decentralized finance (DeFi) within the Cardano blockchain ecosystem.
Emurgo has entered into a partnership with a regulated US-based financial services company to act as a banking partner of sorts, responsible for issuing USDA tokens to enforce compliance with oversight rules.
The $USDA token will be available on the Anzens platform in 2023, allowing users to convert their dollars into USDA using various payment channels, such as credit and debit cards and wire transfers. Users will also be able to convert other stablecoins, such as USDC and USDT, and Cardano's native token, ADA.
Meanwhile, Cardano-based COTI is responsible for the upcoming over-collateralized algorithmic stablecoin DJED, which is backed by ADA and the reserve currency SHEN and addresses non-collateralized stablecoins.
DJED is set to go live on the mainnet as early as January 2023 after passing several audits and stress tests, as is usual with Cardano. DJED will be integrated with selected decentralized exchanges (DEXs) after its release.
Cardano TVL Surge as Funds Move to DeFi
In other news, recent data from DefiLlama shows that the total value locked (TVL), excluding staked tokens, on Cardano surged by 5.29%, or about $3 million, to $53.63 million within the 24 hours ending November 23. This brought the total number of ADA tokens locked onto the blockchain to 171.79 million.
Reports show that this surge in TVL could be a result of a large inflow of funds into top DeFi blockchain protocols such as SundaeSwap, Minswap, and WingRiders. The surge can also be traced to the mass migration of funds from centralized exchanges to decentralized exchanges due to the recent FTX crash.
ADA Price Action Remains Suppressed
Cardano appears to have formed a new bottom at the $0.300 line after recording three failed attempts to breach the support in the last few days. However, the cryptocurrency has failed, yet again, to take advantage of favorable news (as highlighted at the outset) and managed to only record a suppressed 1.5% move within the 24 hours ending November 23.
The mild bounce witnessed in Cardano coincides with a relatively bullish performance seen in the broader market on November 23.
That said, if the emerging pattern is sustained, we should see the price of the cryptocurrency battle its way up to the $0.370 mark over the coming days. Do you think $0.300 is the bottom for ADA?
ADA Statistics Data
ADA Current Price: $0.315
ADA Market Cap: $10.8B
ADA Circulating Supply: 34.4B
ADA Total Supply: 35.1B
ADA Market Ranking: #8
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This article should not be taken as financial advice. It is essential to conduct research before making any investment decisions.