Cardano price is up 2.5% over the past 24-hours to reach $0.398260, following a 1.5% increase in the overall market. This level makes for an 11% increase in a fortnight and a 35% increase over the past 30 days, with ADA price helped by the launch of Cardano-based stablecoin DZ last week.
The arrival of Z has prompted additional demand for ADA, one of the main reserve tokens for the new algorithmic stablecoin. This has also resulted in higher usage of Cardano, with the total value locked (TVL) of the layer-one network increasing by more than 100% since the beginning of January.
Cardano Price Forecast Since the Start of the Year as DeFi TVL on Cardano Doubles – $1 ADA Coming?
ADA’s indicators suggest that it is a good time for the altcoin right now, with its 30-day moving average (red) close to surpassing its 200-day (blue). If it rises above the long-term average to form a golden cross, then the coin could be in line for further gains.
At the same time, the Relative Strength Index (purple) of ADA continues to hover around the 60 mark. It looks like it is in a position to continue rising again, with the RSI currently rallying every time it dips.
As mentioned above, ADA is doing well largely due to the launch of the DZ (DJED) stablecoin. So far, Z’s Reserve has taken 30.5 million ADA out of circulationThis is likely to increase in the coming days and weeks.
In other words, the demand for ADA is increasing while its supply is decreasing. Hence, the recent rallies, yet it is important to note that DJED currently only has $2 million in supply, meaning it has plenty of growth left to go.
partly due to the advent of jade, Cardano’s TVL has grown from around $50 million on January 1 this year to $108 million, as in writing. This shows that Cardano-based DEXes MuesliSwap and Djed have fueled the growing use of Cardano. mineswap Already listing the new stablecoin.
It is likely that this is just the beginning of Jade’s positive impact on Cardano adoption. This is because the cryptocurrency ecosystem has arguably been crying out for a reliable stablecoin ever since. terra’s fall in May, and it looks like Jade fits the bill.
For example, Djed is backed by the reserves of several cryptocurrencies and will have an over-collateralization ratio of between 400% and 800%. The purpose of such a system is to protect Djed from sudden drops in the value of the coins backing it.
More to the point, with upcoming Cardano upgrades set to enhance its cross-chain interoperability, there is a very good chance that Jade could attract uses beyond the Cardano ecosystem. This includes the bitcoin and ethereum domains.
Specifically, the upcoming upgrade “Support for ECDSA and Schnorr cryptographic signatures to make it easier for developers to build cross-chain apps.In this way, the important use of Djed can be seen.
More generally, we can also see Cardano itself attracting widespread use. Its ecosystem is already growing in the face of a bear market, with over 1,100 apps and projects now being built on its network, with over 110 projects already launched.
However, now that the market is undergoing a rapid correction, Cardano’s growth could really accelerate during 2023.
Therefore, there is every possibility that ADA may return to $1 by the middle of the year. and from there, who knows, with some experts Setting a long term target around $5.30 for token.
cardano alternatives
As promising as ADA is right now, it is not the only high-potential cryptocurrency in the market. Accordingly, we review the top 15 cryptocurrencies for 2023, as analyzed by 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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