Cardano (ADA) Sees Massive Price Increase Over the Next 18 Months as Ecosystem Expands Exponentially
After a minor dip in early February, Cardano (ADA) continued to climb this week.
In the preceding 72 hours, the cryptocurrency rose almost 17% to reach $0.41 during a market-wide rally, before reversing course on Sunday. ADA was trading at $0.40 at press time, a decrease of 0.77% over the previous 24 hours, according to statistics from CoinMarketCap.
Many innovations inside Cardano’s ecosystem are responsible for ADA’s enticing price surge. The Total Value Locked (TVL) on the Cardano blockchain increased 49.9% in January, hitting levels not seen since August 2022, according to a study by crypto analysis company CryptoCompare. Its expansion was driven by decentralized protocols, with lending protocols like as Meld and Indigo expanding by over 48 percent and 77 percent, respectively. As observed on DefiLama, Cardano’s TVL was about $126M at the time of reporting, indicating that growth persisted in the first half of February.
The paper also noted Cardano’s price increase in January, noting that “this was the asset’s best-performing month since August 2021.” Last month, the No. 7 cryptocurrency by market capitalization profited from an industry-wide crypto lift-off, which resulted in a price increase of just over 70% from a record low of $0.25. The favourable price movement of Cardano was supported by a surge in trading activity, with volumes on major exchanges increasing by around 158% to $9.87B.
The much-anticipated Djed stablecoin went online on the Cardano blockchain earlier this month, igniting a surge of community optimism. The so-called overcollateralized stablecoin has accumulated over 31 million Cardano (ADA) tokens as collateral in less than two weeks since its introduction.
As of February 16, its base reserves included 31,200,698.37 ADA, representing a collateral ratio of 514%. In addition, the market capitalization of Djed grew from $1,7M at launch to $2,17M at press time, indicating that the pegged asset has been adopted.
During a Tuesday Twitter Spaces session, Binance CEO Changpeng Zhao said that the cryptocurrency sector will likely “search for other possibilities” if authorities continue to crack down on stablecoins. This indicates that non-dollar-backed stablecoins such as Djed and other algorithmic stablecoins may arise, driving the whole cryptocurrency sector towards total decentralization.
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