Cardano price has gained 6% in the last 24-hours, rising to $0.404805 as the 24-hour trading volume of the coin has crossed $600 million. This is the highest it has been in almost two weeks, with ADA also up 8% in seven days and 59% in a month.
This makes ADA one of the best performing major cryptocurrencies in the market, with the increase in usage of the Cardano-based stablecoin DJED being one of the biggest factors in its recent growth. And with the rise of DJED pointing to the increasing utility of Cardano, it signals the possibility that ADA could be one of the biggest winners in the market this year.
Cardano Price Forecast as $600M Trading Volume Floods – Can ADA Reach $1?
ADA’s indicators suggest that the altcoin is in the midst of a clear uptrend. Its relative strength index (purpole) has jumped to or above 70 over the past few weeks and has remained there, indicating continued positive momentum.
Even more promisingly, the coin’s 30-day moving average (red) is getting close to rising above its 200-day average (blue). If it crosses the longer term average, it will form a ‘golden cross’, potentially indicating an even bigger breakout.
In other words, there is a real possibility that ADA could easily move above its current levels, moving from $0.404805 to $0.5 and beyond, in the coming days.
And there are plenty of reasons to be optimistic about ADA and Cardano right now. In particular, the launch of the Cardano-based DZ (DJED) stablecoin has led to a massive increase in demand for ADA.
Because Djed is an over-collateralized stablecoin, this means that it needs more backing in crypto than in nominal value. Most of this support is currently made up of ADA. 28.3 million ADA is currently sitting in its reserves (and growing).
Needless to say, with the growing demand for Cardano-based DEXes MuesliSwap and stablecoins, Djed reserves will increase. mineswap Already listing the new stablecoin. In this way, more ADA will be taken from the market and put into these reserves, reducing the circulating supply of ADA and increasing its price.
The market is already seeing this effect given how strongly ADA has rallied since the launch of Z. And given how Djed is engineered, the stablecoin is likely to attract a lot of converts.
Notably, Djed is backed by the reserves of multiple cryptocurrencies and will have an ultra-collateralized ratio of between 400% and 800%. This setup is intended to protect Jade from many of the risks highlighted by Terra, which fell into disrepute last year.
At the same time, Djed has been launched in conjunction with SHEN, which exclusively serves as one of its main reserve tokens. Interestingly, users will have to pay a fee in ADA for minting or burning SHEN (or DJED), which will further increase the demand for ADA over time.
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It’s also worth noting that the launch of Jade opens a chapter in Cardano’s history during which it provided greater utility to the crypto ecosystem, and consequently enjoyed greater adoption. For example, Total value of the network locked increased from $48.95 million on January 1st to $97.05 million today, representing an increase of approximately 98%.
Put another way, the value of Cardano as a network has basically doubled in a month, and it is likely to only go up from here. The process will be aided by a significant upgrade scheduled for this month, when Cardano will update its Plutus smart contract language.
In short, the planned fork”Support for ECDSA and Schnorr cryptographic signatures to make it easier for developers to build cross-chain apps.“This will enable Cardano to take advantage of interoperability between itself and other chains, such as bitcoin and ethereum.
So we can expect the Cardano ecosystem to expand significantly with cross-chain compatibility, meaning dapps built for one chain can be easily repurposed to work on Cardano as well. This will encourage more growth over time, with teams knowing that their platform will be exposed to a greater potential userbase.
Even now, Cardano’s ecosystem continues to grow, with over 1,100 apps and projects now being built on its network, with over 110 already launched. It also contains over 5,500 Plutus scripts (i.e. Cardano’s version of smart contracts), which indicate the actual usage of the network.
And judging by this month’s update, the number of Plutus scripts running will undoubtedly increase even more. in the back mid septemberThese were just over 3,200, with the upcoming increase showing just how fast Cardano is developing.
In light of all this, ambitious medium and long-term price targets for ADA are appropriate. The altcoin’s record high of $3.09 was set back in September 2021 when Cardano wasn’t even half as useful as a network — or used to be.
Accordingly, it becomes highly possible that ADA could return to $1 at some point in the next few months, assuming a general recovery in the broader cryptocurrency market.
some experts have Set a long term target around $5.30 for the coin, as well as a target of $2.45 by 2025. These are arguably conservative forecasts, given that they are averages, and it is entirely conceivable that ADA could move significantly higher.
For example, the net worth of Cardano has really just started rising. At $97.05 million, it only holds 0.3% of ethereumIt shows how much higher it has to rise.
Yet the thing is, despite Cardano being so small at the moment, ADA is still the eighth largest cryptocurrency by market cap. If Cardano were to continue to see high usage and adoption, ADA could rise up the rankings even more easily.
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If you are looking for other high-potential crypto projects with ADA, we have reviewed the Top 15 Cryptocurrencies for 2023, as analyzed. crypto news Industry Talk Team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talks section features insights by crypto industry players and is not part of the editorial content of 0x0news.com.
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