Cardano (ADA) prices have jumped 4.7% in 24 hours. The price movement is likely a response to DeFi (Decentralized Finance) activity spiking on the ADA network. According to the data available on DeFiLlama, activities on the top DeFi protocols on the ADA network are surging. Minswap TVL (Total Value Locked) has surged by 2.72%, Indigo by 6.17%, and lending platform Aada by a whopping 58.95%. Minswap continues to dominate the ADA network with 43.36%.
Aada is the top-performing Cardano-based DeFi protocol over the previous week. The lending platform surged by 56.56% in seven days. Nonetheless, the total value locked (TVL) for Aada is still low, at $351k, compared to others. At press time, Aada was trading at $0.207, up by 5.45% in the last 24 hours.
ADA DeFi TVL is currently $52.55 million, up by 3.27% in the last 24 hours. However, TVL is still significantly lower than in March 2022, when it was $326 million, an 83.8% decrease.
Additionally, Cardano dApps passed the 16 million transaction mark earlier last week.
The Cardano-based stablecoin, Djed, to debut this month
Algorithmic stablecoins were under the scanner in 2022 due to the collapse of Terra‘s UST stablecoin. However, Cardano (ADA) and COTI have joined forces to introduce an over-collateralized algorithmic stablecoin, Djed, pegged to the US Dollar. Djed will officially launch on the Cardano mainnet in January 2023, according to the company. However, it will undergo multiple tests and audits.
SHEN, another currency, was included in the stablecoin’s design to ensure stability. If there is not enough ADA to pay out to DJED holders, SHEN bonuses will take over. SHEN minting stops when the reserve ratio hits 800%, which protects SHEN against inflation. With ADA, SHEN, and DJED, the new stablecoin will operate on a tri-coin structure. DJED seeks to overcome the drawbacks in the stablecoin market.
The launch of the new stablecoin might have some positive outcomes for Cardano. If things work out as planned, we could see the launch of an algorithmic stablecoin that has stable functionality.