Cardano's Djed Gains Traction and Overtakes USDT Amid Stablecoin Drama
Cardano-built Djed gains bigger premium to market than Tether's USD following stablecoin crisis
Following the storm in the stablecoin sector in recent days, Djed, the stablecoin developed by COTI on Cardano, has gained a premium over the rest of the market and at one point was even trading at $1.08 against the dollar. As a prime example, Djed traded at a premium and continues to do so even to USD from Tether, USDT, the largest stablecoin with a capitalization of $73.5 billion.
The difference between USDT and Djed is now 1% in favor of the latter. At the same time, the ADA-backed stablecoin continues to grow in trading volume. At the moment, according to CoinMarketCap, the value stands at $545,252, up 268% from the last two days.
The crisis in the stablecoin sector was the first big test for Djed, launched on Cardano's core network just over a month ago. As covered by U.Today, Djed, developed by COTI, is an algorithmic stablecoin with redundant collateral; a more detailed description of its principles and operating mechanism can be found here. Djed's current reserve is 33.28 million ADA, which is 428% collateral. The circulating offer of the stablecoin currently stands at 2.4 million Djed.
The peak of the panic now seems to have passed, and the prices of a number of stablecoins, such as LUSD or BUSD, have regained their peg to the dollar. The main culprit, USDC, continues to trade below the key mark, at $0.96 per token. The community is now waiting for the start of the work week to see what further steps will be taken on this issue.
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