Connect with us
Active Currencies 14724
Market Cap $2,649,735,984,224.19
Bitcoin Share 51.46%
24h Market Cap Change $3.36

Will Djed make the most of stablecoin turmoil? Here’s what the metrics say

2min Read
Will Djed make the most of stablecoin turmoil? Here's what the metrics say

Share this article

  • Djed didn’t lose its USD peg during the recent turmoil in the stablecoin market,
  • Djed’s TVL saw gains of 17% since the USDC depegging saga,

Cardano’s [ADA] stablecoin Djed, which launched earlier this year, may soon expand to other layer-1 networks like BNB Chain [BNB] and Ethereum [ETH].


Read Cardano’s [ADA] Price Prediction 2023-24


The CEO of COTI, the firm which developed Djed in collaboration with Input Output HK (IOHK), said that the expansion was always part of the project scope but they will work towards it with greater focus.

The CEO added that they received several requests from non-Cardano DeFi protocols to have the stablecoin launched on their blockchains.

 

Chance to thrive?

The recent developments in the stablecoin ecosystem put the focus towards entities which remained reliable throughout the chaos. One of them was Djed, which didn’t lose its USD peg.

Infact at one point in time, it traded at a premium against the USD, per date from CoinMarketCap. During periods of high demand, stablecoins tend to go above their pegged value.

Source: CoinMarketCap

On the other hand, coins like USD Coin [USDC], DAI, and FRAX lost their dollar peg during the turmoil.

Djed had a 487% reserve ratio, implying that each Djed was backed by more than four times its value in ADA. There were more than 33 million ADA coins in reserves.

The over-collateralization mechanism was meant to provide protection to Djed against fluctuating market conditions, similar to the one which brought about a downfall of TerraClassicUSD [USTC] last year.

However, it should be noted that Djed was still a newcomer on the horizon. Its trading volume was a fraction of that of other established coins like USDC and DAI, which played a big part in making it immune to macroeconomic triggers.


How much are 1,10,100 ADAs worth today?


Djed’s contribution to ADA

Djed’s total value locked (TVL) saw gains of 17% since the USDC depegging saga, data from DeFiLlama revealed. At the time of writing, it accounted for 8% of the total TVL on the Cardano blockchain.

Source: DeFiLlama

At press time, ADA traded at $0.3449, a marginal increase of 0.15% from the previous day. Bullish sentiments for the coin were back as the number of long positions vis-à-vis the short positions increased.

Source: Coinglass

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.