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Cardano (ADA) Price May Benefit From This New DJED Stablecoin Milestone, Here's How

Mon, 02/06/2023 - 11:02
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Godfrey Benjamin
DJED stablecoin can trim ADA supply, thus pushing price growth
Cardano (ADA) Price May Benefit From This New DJED Stablecoin Milestone, Here's How
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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.

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.

Cardano Projects Building on Blockchain Hit Major Milestone

It 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.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.