- The excitement around the upcoming Alonzo hardfork and the smart contract functionality is driving ADA price higher.
- Cardano will soon release the prototype of its own stablecoin, Djed.
After some consolidation earlier this week, the overall cryptocurrency market has gained 6 percent surging past $2 trillion. Leading the show is the Ethereum-killer Cardano (ADA), and now the world’s third-largest cryptocurrency.
As of press time, Cardano (ADA) is up 20 percent trading at a new all-time high of $2.53 and a market cap of $80.2 billion. With this move, Cardano’s year-to-date gains stand at a massive 1300 percent. Just over the last month, the ADA price had surged more than 100 percent.
The introduction of smart contracts will exponentially increase Cardano’s network capacity. Thus, it will unlock new opportunities in the DeFi space and emerge s a true Ethereum-killer.The cryptocurrency has rallied amid all the hype around the upcoming Alonzo hardfork which will introduce the much-awaited smart contract functionality on the Cardano blockchain. Smart contracts, the self-executing agreements between buyers and sellers, have majorly contributed to Ethereum’s success.
Cardano unveils Its own Stablecoin
To further the growth of Cardano’s network ecosystem, Cardano’s parent group IOG (Input Output Global) has released a new stablecoin algorithm Djed. The Djed stablecoin will solve the most common issues of transparency, reserves, and liquidity. To guarantee its price stability, Cardano will leverage its upcoming smart contract functionality. As the official blog post for IOHK notes:
Djed is a crypto-backed algorithmic stablecoin contract that acts as an autonomous bank. It operates by keeping a reserve of base coins, and minting and burning stablecoins and reserve coins.
The Cardano stablecoin will function similar to an Autonomous “Central bank-like” contract. Interestingly, the Djed won’t be pegged to a single currency. As the blog post mentions: “It can work with other currencies, as long as there are oracles providing the contract with the corresponding pricing index”.
Having released the Djed paper, Cardano co-founder Charles Hoskinson said that they have formed a Plutus team to work on a prototype. Besides, IOG also noted that Djed’s properties are “proven by mathematical theorems”.
Furthermore, the Cardano-based stablecoin will have two versions: one is the minimal Djed, which will be “simple and intuitive” stablecoin. The other will be the extended Djed with more stability efforts. IOG said that it will also offer more incentives to maintain the reserve ratio at an optimum level.
Launching it as a testnet project, Cardano has already implemented the stablecoin on Binance Smart Chain, Polygon, Ethereum, Avalance, etc.
Crypto Market Update
Apart from just Cardano, there’s a strong recovery in the overall crypto market. Almost all of the top ten cryptocurrencies are up anywhere between 6-20 percent. Bitcoin (BTC) is up 6 percent moving past $47,000 levels.
In the altcoin space, Etheruem (ETH) has once again surged past its crucial resistance of $3200 gaining 8 percent over the last 24 hours. After Cardano (ADA), XRP is the second-biggest gainer today with 12 percent gains.