- Cardano’s overcollateralized stablecoin DJED launched on the mainnet on 31 January.
- Increased DJED minting led to a jump in on-chain activity for ADA.
Following several months of development, Cardano’s [ADA] native over-collateralized stablecoin Djed [DJED] launched on the network’s mainnet on 31 January.
How much are 1,10,100 ADAs worth today?
DJED is pegged to the United States dollar and backed by Cardano’s native cryptocurrency, ADA. It adopts the Shen [SHEN] token as its reserve coin. According to the announcement, if the reserve ratio drops below 400%, the platform will prevent the burning of SHEN and minting of new DJED, but DJED will always be redeemable.
Since DJED launched on the mainnet, SHEN minting rallied, and the reserve ratio was 598% at press time. If the ratio goes over 800%, the minting of new SHEN will be prevented, but users will still be able to mint and burn DJED. Likewise, over $27 million in ADA tokens have been locked into the DJED ecosystem in the last 24 hours.
Source: djed.xyz
The announcement blog post stated further that the developers behind DJED intended to improve the stablecoin over the next year. This will include updates such as improved scalability in version 1.2 with Vasil features, dynamic fees, and prices, and an improved delegation program in version 1.3.
The developers also planned to expand collateral options to include Wrapped BTC [wBTC] and wrapped ETH [wETH] on the Cardano network.
ADA in the last 24 hours
DJED’s launch on decentralized exchanges (DEXes), including MinSwap, Wingriders, and MuesliSwap, resulted in a notable increase in Cardano’s total value locked. In the last 24 hours, the total value locked (TVL) saw a 22% spike due to a rise in ADA deposits for minting DJED.
Source: DefiLlama
According to data from DeFi Llama, MinSwap was the leader among all DEXes on the chain, recording a 31% jump in its total value locked in the last 24 hours.
Source: DefiLlama
At press time, ADA exchanged hands at $0.3826. Data from CoinMarketCap revealed that the alt’s price has increased by 3% in the past 24 hours. With increased ADA transactions in the last 24 hours, its trading volume also jumped.
Read Cardano’s [ADA] Price Prediction 2023-24
Per data from Santiment, the launch of DJED led to a 65% intraday rally in the count of unique addresses that traded ADA on 31 January. Data from the on-chain analytics platform showed that 1.02 billion unique addresses were involved in transactions involving ADA on that day.
Likewise, the aggregate amount of ADA coins across all transactions on the Cardano network went up by 37% after the launch of DJED, data from Santiment revealed.
Source: Santiment
