- The launch of the USDM stablecoin in the United States is expected to enhance growth of Cardano's DeFi sector.
- Active wallets on the network exceed the 600,000 mark for the first time since late 2022 in anticipation of the rollout.
- Increased network activity suggests a correlation with price action as ADA briefly broke the $0.80 resistance before experiencing a correction.
Cardano (ADA) broke the $0.8 resistance level on Thursday after trading below it for 21 months, although it quickly corrected afterward following a broader retreat in cryptocurrency prices. In the weekly time frame, however, Cardano price appears to be in an uptrend which could be further supported by the upcoming launch of its stablecoin, USDM, in the United States.
ADA/USDT 7-days chart
Cardano’s USDM to launch in the United States on Saturday
Mehen Finance LLC plans to roll out the USDM stablecoin across 19 states in the US with a direct fiat on-ramp to the Cardano ecosystem. The coin is fully fiat collateralized, with each USDM pegged 1:1 to the US Dollar (USD).
The launch, only 24 hours away, is poised to attract new users to the smart contract blockchain platform and allow them access to improved web3 features that were previously impossible on Cardano.
In addition, USDM will serve as a major boost to Cardano's DeFi ecosystem, which has suffered from slow growth due to a lack of crypto infrastructure. It would serve as a reliable trading pair to projects within Cardano, attracting more users and increasing liquidity in the process. This could also act as a signal for DeFi protocols that have been skeptical about launching on the blockchain platform.
Active wallets hit a major milestone
A few months back, in September 2023 precisely, active wallets on Cardano were at a low of around 300,000. However, with the launch imminent on Saturday, that number has crossed 600,000, a height last seen in September 2022, according to data from Danogo, a DEX on Cardano.
Cardano active wallet address
Total value locked (TVL) on Cardano is also growing steadily, with all of its top 10 protocols recording gains in the last 24 hours. Indigo, MinSwap, and Liqwid lead other protocols on the platform by a mile in terms of TVL.
The recent improvement in network activity also comes at a time when ADA briefly broke the $0.8 resistance on Thursday, sending its treasury past the $1 billion mark, even though these values fell slightly after prices corrected on Friday. Considering the potential impact of USDM's US rollout on the Cardano community, the price increase may suggest a correlation with improved on-chain activity.
However, it's also important to note that the general crypto market rally may be responsible for its price rise rather than network growth.
The Cardano network is also pursuing other strategic partnerships to help boost its price and the growth of its platform. One such initiative includes Dubai's police adoption of Cardano for its blockchain policing project.
ADA has a market capitalization of $24.9 billion as of the time of writing.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ethena plans to leverage USDe to integrate DeFi, CeFi and traditional finance
Ethena (ENA), a protocol developed on the Ethereum blockchain offering a synthetic stablecoin (USDe) that operates across various DeFi applications, announced on Friday that itsUSDe will integrate DeFi, CeFi and traditional finance as part of its 2024 roadmap.
XRP hovers above $0.50 as Ripple joins alliance to simplify recovery of digital assets
XRP trades around $0.5174 early on Friday, wiping out gains from earlier in the week, as Ripple announced it has joined an alliance to support digital asset recovery alongside Hedera and the Algorand Foundation.
Toncoin price surges as Notcoin gains attention across the crypto community
TON saw a brief rally on Thursday following a recent announcement that Binance and OKX will launch Notcoin (NOT) as the newest token on the Binance launchpool and the OKX Jumpstart.
AI crypto coins rally ahead of ChatGPT creator OpenAI plans to announce Google search competitor on Monday
Barely before the hype around NVIDIA stock gain is over, AI crypto tokens have another bullish catalyst coming their way, which could provide more tailwinds to drive the price of the sector’s tokens.
Bitcoin: Why BTC is close to a bottom
Bitcoin (BTC) price efforts of a recovery this week have been countered by selling pressure during the onset of the American session. However, the downside potential appears to have been capped. Markets have noted significant trading differences between sessions, and while the Asian market showed strength, whatever ground they were able to cover was oftentimes wiped out by traders in the US.