DJED, a popular stablecoin on Cardano, witnessed a massive spike in volume. ADA’s price recovered after the lawsuit, but development activity slowed.
About the last quarter, Cardano[ADA] experience fluctuations in performance. However, the increasing stablecoin volume on the protocol has the potential to improve the condition of the network and support future growth.
Stablecoins come to the rescue
According to ADAverse, the daily volume of the Cardano stablecoin DEJD has surpassed 163,000 ADA. This points to increased adoption as more users and investors show interest in using DEJD and stablecoin on the network. The higher daily volume also improves liquidity, making for smoother and more efficient transactions within the protocol.
Realistic or not, here is the market cap of ADA in terms of BTC
Moreover, the robust daily volume underscores the usefulness of stablecoins on Cardano, potentially fueling their use in various DeFi applications. In addition, the increased network activity reflects positively on the overall health and vibrancy of the Cardano ecosystem.
— Adaverse News | Cardano and Ergo News (@AdaverseNews) July 15, 2023
How was ADA affected?
Along with DJED, interest in the ADA token also grew. Since crashing to the $0.220 support level as a result of SEC’s lawsuit against Binance, the ADA token has managed to recover quite nicely. The price of ADA is up 46.64% since then, but it still hasn’t managed to break the $0.384 resistance levels it once traded at.
Although the price of ADA has been falling over the past few days, no significant bearish trend has been identified at the time of writing. It remains to be seen whether the ADA token will manage to retest and weaken the $0.384 resistance levels in the future.
The RSI was at 52.80, implying that buyer momentum was weak. The OBV was also observed to grow in recent days, indicating increasing buying pressure for ADA.
Together with the price increase, the volume of ADA also grew. However, according to data from Santiment, the volume of ADA has declined in recent days.
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In addition, there was a huge drop in development activity happening on Cardano as well, suggesting that new updates or upgrades may not be happening on the Cardano network.
These developments may make potential investors more cautious about purchasing ADA in the future.
This post Cardano: How stablecoins are pulling the strings for a green ADA
was published first on https://ambcrypto.com/cardano-how-stablecoins-are-pulling-the-strings-for-a-green-ada/