Cardano: How stablecoins are pulling the strings for a green ADA
- DJED, a popular stablecoin on Cardano, witnessed a massive spike in volume.
- The price of ADA recovered after the lawsuit, however, development activity declined.
Over the last quarter, Cardano[ADA] experienced fluctuations in its performance. However, the increasing stablecoin volume on the protocol holds the potential to enhance the network’s condition and sustain growth in the future.
Stablecoins to the rescue
According to ADAverse, the daily volume of the Cardano stablecoin DEJD has exceeded 163,000 ADA. This signals increased adoption as more users and investors are showing interest in DEJD and stablecoin usage on the network. The higher daily volume also enhances liquidity, ensuring smoother and more efficient transactions within the protocol.
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Additionally, the robust daily volume underscores the utility of stablecoins on Cardano, potentially fueling their use in various DeFi applications. Moreover, the increased network activity reflects positively on the overall health and vibrancy of the Cardano ecosystem.
— Adaverse News | Cardano and Ergo News (@AdaverseNews) July 15, 2023
How was ADA impacted?
Along with DJED, the interest in the ADA token was also growing. Since crashing to the $0.220 support level due to SEC’s lawsuit against Binance, the ADA token has managed to recover quite well. The price of ADA has grown by 46.64% since then, however, it still hasn’t managed to break past the $0.384 resistance levels that it was once trading at.
Even though ADA’s price declined in the last few days, no significant bearish trend was established at the time of writing. It remains to be seen whether the ADA token manages to re-test and weaken the $0.384 resistance levels in the future.
Its RSI was at 52.80, implying that the momentum was slight with the buyers. The OBV was also observed to be growing since the last few days, indicating rising buying pressure for ADA.
Along with the surge in price, ADA’s volume also grew. However, according to Santiment’s data, in the last few days, the volume of ADA declined.
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Additionally, there was a massive fall in the development activity occurring on Cardano as well, suggesting that there may be no new updates or upgrades occurring on the Cardano network.
These developments may make potential investors more cautious about buying ADA going forward.