Cardano Sentiment Shifting “Positive” As NFTs Pick Up Steam

The ADA network is getting antsy for a decentralized exchange, but could Cardano non-fungible tokens (NFTs) be the saving grace for the smart contract platform?

Covered:

• Cardano Price Update
• Are NFTs and DeFi Finally Coming To ADA?
• Cardano Stablecoins Growing

The Cardano price looks like it’s caught in a landslide after investors lost faith in the token’s coming decentralized finance (DeFi) ecosystem. Despite the lackluster price performance, however, investor sentiment could be shifting after signs of a blooming DeFi ecosystem have emerged.

Cardano Price Update

The ADA price has not been doing so hot over the past few months. After the initial launch of smart contracts in September, the token went relatively stagnant, trading sideways above $2.00 before finally capitulating. At the time of writing, ADA is trading at $1.60.

The token appears to be retesting relative strength index (RSI) levels that previously marked local bottoms for the asset before it went on to make new highs.

For more detailed analysis on the ADA token price, check out our latest Cardano technical analysis from yesterday.

Are NFTs and DeFi Finally Coming To ADA?

Cardano’s commercial NFT business lead Josh Miller said in a recent Cardano 360 session that “we’re seeing a lot of tech come online… we’re seeing explosive growth in the CNFT community.”

CNFT recently celebrated a hundred thousand registrations in the Cardano community, along with the minting of 1.7 million NFTs and 1.5 million of ADA traded within this ecosystem, as noted by the Cardano team, adding that these are “probably low numbers.”

Just last month, SpaceBudZ managed to complete an NFT sale on the network for 510,000 ADA, worth $816,000 USD currently.

SOLD – SpaceBud #9936 was bought for 510000 $ADA https://t.co/E3605AnMs0 #spacebudzsold pic.twitter.com/W6Jml5mbHt

— SpaceBudzBot (@spacebudzbot) October 12, 2021

Cardano Stablecoins Growing

Another crucial element to a thriving DeFi ecosystem is a healthy stablecoin market. Ardana, one of the primary stablecoin hubs on Cardano, recently announced a strategic partnership with NEAR Protocol, as reported by CoinTelegraph.

Ardana uses DANA as its native governance token, but it will use dUSD as verified on-chain collateral to enable borrowers to take leverage on their ADA or other supported assets. 

With the latest NEAR partnership, Cardano users will soon be able to transfer assets seamlessly between the platforms. NEAR will also soon be available as an asset on Cardano to serve as collateral on Ardana to mint stablecoins. 

Ardan CEO Ryan Matovu says that “the collaboration will help both organizations explore new avenues of growth in the emerging ecosystem of blockchain technology and will prove to be a landmark in the future for blockchain scalability.”