After some consolidation earlier this week, the overall crypto market has gained 6% topping $ 2 trillion. Leading the show is Ethereum killer Cardano (ADA), and now the world's third largest cryptocurrency.
At press time, Cardano (ADA) is up 20% trading at a new all-time high of $ 2.53 and a market capitalization of $ 80.2 billion. With this move, Cardano's earnings so far this year are at a whopping 1,300%. In just the last month, the price of the ADA had risen more than 100%.
The introduction of smart contracts will exponentially increase the capacity of the Cardano network. Hence, it will unlock new opportunities in the DeFi space and emerge as a true Ethereum killer. The cryptocurrency has rebounded amid all the buzz around the upcoming Alonzo hardfork, which will introduce the highly anticipated smart contract functionality on the Cardano blockchain. Smart contracts, self-executing agreements between buyers and sellers, have contributed greatly to the success of Ethereum.
Cardano presents its own Stablecoin
To promote the growth of the Cardano network ecosystem, Cardano's parent group, IOG (Input Output Global), has launched a new stablecoin algorithm, Djed. The Djed stablecoin will solve the most common problems of transparency, reserves and liquidity. To ensure its price stability, Cardano will take advantage of its upcoming smart contract functionality. As the official IOHK blog post points out:
Djed is a crypto-backed algorithmic stablecoin contract that acts as an autonomous bank. It works by maintaining a reserve of base currencies and minting and burning stablecoins and reserve coins.
The Cardano stablecoin will function similar to a standalone contract "similar to a central bank." Interestingly, the Djed will not be tied to a single currency. As the blog post mentions: "It can work with other currencies, as long as there are oracles that provide the corresponding price index to the contract."
Having released the Djed paper, Cardano co-founder Charles Hoskinson said they have formed a Plutus team to work on a prototype. Furthermore, IOG also noted that the Djed properties are "proved by mathematical theorems."
In addition, the Cardano-based stablecoin will have two versions: one is the Minimum Djed, which will be a “simple and intuitive” stablecoin. The other will be the expanded Djed with more stability efforts. IOG said it will also offer more incentives to keep the reserve ratio at an optimal level.
Launching it as a testnet project, Cardano has already implemented the stablecoin on Binance Smart Chain, Polygon, Ethereum, Avalanche, etc.
Cryptocurrency Market Update
Aside from Cardano, there is a strong recovery in the crypto market in general. Almost all of the top ten cryptocurrencies are up 6-20%. Bitcoin (BTC) is up 6% past the $ 47,000 levels.
In the altcoin space, Etheruem (ETH) has once again broken past its crucial resistance of $ 3,200 gaining 8% in the last 24 hours. After Cardano (ADA), XRP is the second biggest winner today with gains of 12%.