Cardano [ADA]: DJED spreads its wings, prepares for multi-chain takeoff
- DJED will soon expand to multiple blockchain networks.
- Although oversold, ADA presents a good buying opportunity on the daily chart.
Launched on the Cardano [ADA] mainnet on 31 January, the network’s native over-collateralized stablecoin Djed [DJED] is set to expand to multiple blockchain networks.
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In a blog post published by Coti on 11 May, the developers behind DJED said, while the stablecoin will “remain unchanged when it is implemented on other blockchains,” it will exist as a wrapped token on these networks.
The developers added that a centralized bridging solution is necessary to provide a safe platform and decided to partner with Chainport.
According to Coti:
“DJED will likely be integrated into Binance Smart Chain and Ethereum first, with other blockchains to be added at a later date.”
DJED announced its multichain expansion plans two weeks after the over-collateralized stablecoin launched on Milkomeda-C1, an EVM-compatible sidechain of the Cardano network.
DJED’s contribution to Cardano
Since its launch, DJED has amassed a total of 36 million ADA tokens locked in its over-collateralized reserve. According to data from DefiLlama, at press time, the coin’s total value locked (TVL) was $15.08 million.
Also, despite the momentary de-pegging of leading stablecoins USDC, USDT and DAI when Silicon Valley Bank (SVB) unexpectedly collapsed in March, DJED maintained its peg.
At the time of writing, Cardano’s TVL stood at $139.36 million. DJED ranked as the fourth-highest contributor despite being released barely four months ago.
ADA’s price performance
At press time, the coin traded hands at $0.3603. As the rest of the market trades north, ADA’s Open Interest has fallen into decline since 16 April.
According to data from Coinglass, the alt’s Open Interest has since dropped by 33%.
When an asset’s Open Interest dips, the market for the asset becomes more illiquid. It will also be marked by a fall in the number of available buyers and sellers. It is often followed by a drop in such an asset’s value.
Read Cardano’s [ADA] Price Prediction 2023-24
Assessed on a daily chart, ADA appeared oversold at press time. However, its price rested on the lower band of its Bollinger Band indicator.
This meant that a price rebound was likely while the coin traded below its average trading range and was oversold. The bullish divergence created between the ADA’s Chaikin Money Flow (CMF) and its price lent basis for this position.