Cardano delays USDM launch: Will ADA face the music?
- Cardano faced a setback as the much-anticipated stablecoin launch was delayed
- ADA’s price, sentiment, and protocol activity bore the brunt of the news
On the 9th of January, an X (formerly Twitter) post by Matthew Plomin revealed that the launch of Cardano’s [ADA] stablecoin USDM had been postponed.
Good morning #cardano.
People deserve a straightforward explanation for why $USDM has been delayed.
Here is our transparent response:
— M₳tthΣw Plomin | $USDM launch whenever it’s ready (@MatthewPlomin) January 9, 2024
The post attributed the setback to audit recommendations from Sundae Labs. Additionally, Cardano’s development team cited the need for multiple changes to the smart contracts governing the stablecoin.
These adjustments, coupled with necessary testing time and holiday-related delays, have left the future of the stablecoin uncertain. However, Cardano may be eyeing a new target launch date of the 16th of March 2024.
The delay has raised questions about Cardano’s ability to adhere to timelines, potentially impacting the project’s credibility and the value of ADA.
Investors and enthusiasts, who had eagerly awaited the stablecoin’s launch, may now reconsider their expectations and confidence in the Cardano blockchain.
State of Cardano
The delay cast an understandable shadow over Cardano’s overall sentiment in the market. Notably, there was a marked decline in the network’s protocol activity and transactions. This fall in user activity could pose challenges for Cardano’s ecosystem growth and sustainability going forward.
Cardano faced setbacks in the decentralized finance (DeFi) realm as well, with drops in Total Value Locked (TVL) and Decentralized Exchange (DEX) volumes. The decline in TVL suggested diminished user engagement and capital influx, impacting the vibrancy of the DeFi ecosystem on the Cardano network.
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ADA’s price bore the brunt of the news as well, as it declined by 4.58% in just 24 hours. It soon recovered on the back of the market’s bullishness post the SEC’s approval of spot Bitcoin ETFs though.
The velocity of ADA transactions fell though, signaling a slowdown in overall network activity. Put together, these findings underlined diminishing investor confidence in ADA and Cardano as a whole. At least in the immediate aftermath of this news breaking out.