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. At the time of publication, ADA was trading at $0.40, down 0.77% from the previous day.
The appealing price surge of ADA can 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, reaching levels last seen in August 2022. 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 approximately $126 million at the time of reporting, as seen on DefiLama, demonstrating that growth persisted in the first half of February.
The No. 7 cryptocurrency by market value, Cardano, profited from a market-wide crypto lift-off last month, which saw its price rise by just over 70% from a record low of $0.25, according to the research, which also noted Cardano's price growth in January. Cardano had enticing price movement along with a surge in trading activity, with volumes on centralized exchanges increasing by about 158% to $9.87B. The firm stated:
“This was the first increase in trading volume for the asset in thirteen months, a much-needed rebound after hitting the lowest monthly trading volume since October 2020 in December 2022,”
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 other solutions." This indicates that algorithmic stablecoins like Djed and other ones that aren't dollar-backed may start to appear, pushing the entire crypto market towards total decentralization.
