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After a small retreat in early February, Cardano (ADA) increased this week. The price of the cryptocurrency increased by almost 17% during the last 72 hours, reaching $0.41 during a market-wide liftoff, before retreating on Sunday. ADA was trading at $0.40 at the time of publication, down 0.77% over the previous day, according to data from CoinMarketCap.
The appealing price surge of ADA may be attributed to a number of changes in the Cardano ecosystem. The Total Value Locked (TVL) on the Cardano blockchain increased 49.9% in January, hitting levels last seen in August 2022, according to a report by cryptocurrency analysis firm CryptoCompare. Decentralized protocols, such as Meld and Indigo, which facilitate lending, grew by more than 48% and 76%, respectively, to lead this expansion. Cardano’s TVL was around $126 million at the time of reporting, as shown on DefiLama, demonstrating that growth persisted in the first half of February.
Cardano’s price increase in January was also mentioned in the study, which said that “this was the asset’s best-performing month since August 2021.” The market cap No. 7 cryptocurrency, which saw its price rise by just over 70% from a record low of $0.25 last month, benefitted from a market-wide crypto liftoff. Cardano had enticing price movement along with a surge in trading activity, with volumes on centralized exchanges increasing by almost 158% to $9.87B.
After experiencing the lowest monthly trading volume since October 2020 in December 2022, the business stated that this uptick in trading volume was the asset’s first in thirteen months.
The much-anticipated Djed stablecoin launched on the Cardano blockchain earlier this month, electrifying the community. The so-called overcollateralized stablecoin has more than 31 million Cardano (ADA) tokens as backing just two weeks after its inception. There were 31,200,698.37 ADA in its base reserves as of February 16; this is a 514% collateral ratio. Moreover, Djed’s market capitalization climbed from $1.7 million upon launch to $2.17 million at press time, indicating some takeup of the pegged asset.
Tuesday’s Twitter Spaces session included Binance CEO Changpeng Zhao, who stated that if governments tighten their grip on stablecoins, the cryptocurrency market would probably “search for alternative solutions.” This indicates that algorithmic stablecoins like Djed and other ones that aren’t dollar-backed may start to appear, pushing the whole crypto market towards total decentralization.
