Cardano’s price has risen by 2.5% over the past 24 hours, reaching $0.398260 after the overall market has risen by 1.5%. This level provides gains of 11% over the two weeks and 35% over the past 30 days, with ADA prices helped by the launch of the Cardano-based Djed stablecoin last week.
The emergence of Djed has spurred further demand for ADA, one of the main reserve tokens for new algorithmic stablecoins. It has also led to greater usage of Cardano itself, with Tier 1 networks’ Total Locked Value (TVL) increasing by more than 100% since the beginning of January. Cardano Price Prediction With Cardano’s DeFi TVL Doubling YTD – $1 ADA Inflow? The ADA indicator suggests that now is a good time for altcoins, as the 30-day moving average (red) is close to the 200-day moving average (blue). If it rises above the long-term average in the form of a golden cross, it can become a target coin for further growth.
At the same time, the ADA Relative Strength Index (purple) continues to hover around its 60 line and is currently recovering from every drop in the RSI, so it looks like it could continue to rise again. As mentioned above, ADA is doing well thanks to the launch of Djed (DJED) stablecoin. So far, Jed Reserve has withdrawn 30.5 million ADA from circulation, and this amount is likely to continue growing over the coming days and weeks.
In other words, demand for ADS is increasing and supply is decreasing. This is where the recent rally began, but it’s important to note that DJED’s stock is currently only worth $2 million. That means there’s still plenty of room for growth.
Due in part to the rise of Jed, Cardano’s TVL has grown from about $50 million as of January 1 of this year to $108 million at the time of writing. This suggests that Djed has fueled increased Cardano usage as DEX MuesliSwap and Cardano-powered Minswap have already listed new stablecoins.
This is likely the beginning of Djed’s positive impact on Cardano adoption. This is because the crypto ecosystem may have needed a reliable stablecoin after Terra’s crash last May, and Djed appears to fit that requirement.
For example, Djed is backed by several cryptocurrencies and has an overcollateralization ratio ranging from 400% to 800%. This system is intended to protect Djed from a sudden drop in the value of the backup coin. And with upcoming updates from Cardano to improve cross-chain compatibility, there is a very good opportunity for Djed to gain traction outside the Cardano ecosystem. This includes Bitcoin and Ethereum domains.
So, it is possible that ADA will return to $1 by mid-year. And from there, some experts have set a long-term target of around $5.30 per token.