Cardano’s price has increased by 6% over the last day, rising to $0.404805 as the coin’s 24-hour trading volume exceeds $600 million. With ADA also up by 8% in a week and by 59% in a month, this is its highest level in almost two weeks.
This makes ADA one of the best-performing major cryptocurrencies on the market, with increased use of the DJED stablecoin, which is built on Cardano, being one of the main drivers of its recent growth. And it suggests that ADA might end up being one of the greatest winners in the market this year given that the emergence of DJED is also pointing to the expanding utility of Cardano itself.
Today’s Cardano Price
Cardano Price Prediction
The altcoin appears to be in the midst of a significant surge, according to ADA’s indicators. In the past few weeks, its relative strength index (purple) shot up to 70 or above, and it is still there, indicating further upward momentum.
The coin’s 30-day moving average (red) is heading closer to crossing above its 200-day average, which is even more encouraging (blue). A “golden cross,” which might portend a greater breakthrough, would be formed if it crossed the longer-term average.
In other words, there’s a good potential that ADA might easily move from $0.404805 to $0.5 and beyond in the coming days, exceeding its current level.
And right now, there are many causes to be positive about ADA and Cardano. The debut of the Djed (DJED) stablecoin, which is built on Cardano, has in particular resulted in a sharp increase in demand for ADA.
Djed is an over-collateralized stablecoin, which implies it needs more cryptocurrency backing than it is worth on paper. With 28.3 million ADA already lying in its reserves, ADA currently makes up a large portion of this backing (and rising).
Given that the stablecoin is already listed on the Cardano-based DEXes MuesliSwap and Minswap, it goes without saying that Djed’s reserves will increase along with the stablecoin’s increasing demand. As a result, more ADA will be withdrawn off the market and placed in these reserves, lowering the amount of ADA in circulation and raising the price.
Given the sharp increase in ADA since the launch of Djed, the market is already observing this effect. Additionally, considering how Djed has been designed, the stablecoin is sure to win over a lot of new users.
In specifically, Djed will have an over-collateralization ratio of between 400% and 800% and is backed by a reserve of several cryptocurrencies. This configuration aims to shield Djed from many of the dangers mentioned by Terra, which infamously collapsed last year.
At the same time, Shen (SHEN), which serves primarily as one of its key reserve tokens, has been launched along with Djed. It’s interesting to note that users will be required to pay a fee in ADA when either minting or burning SHEN (or DJED), which will eventually lead to a greater demand for ADA.
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