Logo
Cardano Ecosystem

AMBCrypto

02/13/2023

·

443 views


Cardano’s DeFi activity makes an impressive rebound, thanks to…

Cardano’s DEX volume surged since the launch of Djed. ADA’s key indicators were down which could impact its value. Hit hard by the bear market of 2022, Cardano [ADA] experienced a change of fortune on its...

Cardano’s DeFi activity makes an impressive rebound, thanks to…
  • Cardano’s DEX volume surged since the launch of Djed.
  • ADA’s key indicators were down which could impact its value.

Hit hard by the bear market of 2022, Cardano [ADA] experienced a change of fortune on its DeFi front. The total value locked (TVL) on the network’s smart contracts hit $102 million, recording its best performance in six months. 

Source: DeFiLlama

Furthermore, the total decentralized exchange (DEX) volume on the chain also hit its 10-month high recently, having attained a 36% week-over-week (WoW) growth at press time.

February has been welcoming for Cardano. But the question is- What could be fueling this rise?

Source: DeFiLlama


How much are 1,10,100 ADAs worth today?


The ‘Djed’ Factor

A lot of credit behind Cardano’s impressive DeFi growth could be given to its recently launched over-collateralized stablecoin, Djed. 

It is an established fact that stablecoins decrease volatility in crypto markets and act as a useful hedge against wild swings in price. This increases their utility in decentralized finance as activities like borrowing, lending, and derivatives require a stable value. 

Unsurprisingly, Djed’s contribution to Cardano’s liquidity echoed the same sentiment. Two weeks after launch, the stablecoin accounted for more than 8% of Cardano’s TVL, per data from DeFiLlama. 

Source: DeFiLlama

Additionally, more enhancements were expected as part of an upcoming upgrade which could lead to greater deployment of DeFi protocols on the network.

This upgrade will bring new cryptographic primitives to #Cardano, encouraging greater interoperability and secure cross-chain DApp development with #Plutus.

— Input Output (@InputOutputHK) February 8, 2023

Testing times ahead for ADA

In spite of the above developments, the picture was not rosy. ADA’s weighted sentiment which was favorable in the week following the launch of Djed, went into the negative territory. 

The sentiment could have been hit because of the development activity which plummeted over the last week. The daily active addresses which spiked following Djed’s launch showed contraction.

Source: Santiment


Realistic or not, here’s ADA’s market cap in BTC’s terms


At the time of writing, ADA was down 1.12% to be valued at $0.3626, as per CoinMarketCap. February has seen a strong wave of selling and the coin has lost more than 6% of its value in the last week.

At press time, the Relative Strength Index (RSI) dipped below the neutral 50 mark, indicating that selling pressure was back. The Moving Average Convergence Divergence (MACD) continued to move below the signal line, suggesting a further downward movement.

The support at $0.363 remained an important area for the next few sessions. 

Source: TradingView ADA/USD

Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

AD

Proposals Catalyst F14 - Cast your vote, search "Otavio" in the Voting App.

If you are you using your ADA to vote in Cardano’s Project Catalyst don’t forget to voice your vote. We would be excited if you can see, comment, share and vote for us. Tip: To find them its easiest to search for "Otavio"Vote for Us


Read Original Article on AMBCrypto

ORIGINAL SOURCE

https://ambcrypto.com/cardanos-defi-acti...

Disclaimer: Cardano Feed is a Decentralized News Aggregator that enables journalists, influencers, editors, publishers, websites and community members to share news about the Cardano Ecosystem. User must always do their own research and none of those articles are financial advices. The content is for informational purposes only and does not necessarily reflect our opinion.


More from AMBCrypto

See more
What is Cardano? Beginner’s Guide to ADA Blockchain (2024)
AMBCrypto
What is Cardano? Beginner’s Guide to ADA Blockchain (2024)

01/31/2024

·

550 views

Related News

See more
Voting for Us - Catalyst Fund 14

Featured News

See more



    DEFAULTENGLISH (EN)SPANISH (ES)RUSSIAN (RU)GERMAN (DE)ITALIAN (IT)POLISH (PL)HUNGARIAN (HU)JAPANESE (JA)THAI (TH)ARABIC (AR)VIETNAMESE (VI)PERSIAN (FA)GREEK (EL)INDONESIAN (ID)ROMANIAN (RO)KOREAN (KO)FRENCH (FR)CZECH (CS)PORTUGUESE (PT)TURKISH (TR)