Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
While Cardano (ADA) is caught up in the current bearish turn of the broader crypto ecosystem, it is primed to benefit from the recent milestone recorded by its latest stablecoin, DJED. Since the DJED token was launched in January, the protocol confirmed recently that a total of 30 million ADA coins have been locked up in its smart contracts.
Over 30M $Ada locked in the $Djed Smart Contract.
— 𓊽 Djed 𓊽 (@DjedStablecoin) February 5, 2023
We’re just getting started!$Shen $Coti #PoweredByCoti pic.twitter.com/VLJj0KVjvH
With the DJED reserve ratio topping 620% as of the shared update, it is evident that the stablecoin protocol now ranks as the major new attraction for liquidity lockup on the Cardano protocol. The locked ADA on DJED smart contracts has a major implication that is billed to benefit Cardano.
This implication is embodied in the scarcity of the circulating supply of ADA, a trend which, if continued, would generally make the coin more valuable. Based on the law of demand and supply, a reduction in the ADA supply can create an imbalance in demand that will ultimately drive future price growth.
Gamza KhanzadaevIt is worth noting that ADA has no major defined deflationary tendency, a feature that will further highlight the importance of the DJED stablecoin in helping to deflate the supply.
DJED stablecoin setting pace
Branded as the most collateralized stablecoin on Cardano, the DJED stablecoin is pushing the frontiers of what is possible on the blockchain network.
Cardano has a number of new innovations, particularly the sidechain toolkit launched earlier this year that will help drive the growth of many new protocols, leveraging the parent chain's security. With a display of what is possible through DJED, more developers may be developing related products that will go a long way toward contributing to the growth of Cardano in similar ways.
The DJED stablecoin can best be branded as the next major token that will help establish Cardano as a hub for smart contracts ahead of its peers.
Yuri Molchan
Tomiwabold Olajide
U.Today Editorial Team
Vladislav Sopov
Dan Burgin