Cardano welcomes new decentralized exchange on network, ADAX goes live
- Cardano has just welcomed a new decentralized exchange on its network, ADAX.
- The DEX uses Cardano’s Plutus smart contracts to ensure full decentralization.
- Cardano has reached over $70 million in total value locked following the launch of rival DEX SundaeSwap.
Just after five months of the activation of smart contracts on the Cardano network, another decentralized exchange (DEX) ADAX has been launched. Details revealed that the order-book-based DEX is a “core piece of the long-term prosperity of the Cardano ecosystem.”
Cardano ensures full decentralization
ADAX, a custodial and order-book-based DEX incorporates Cardano’s Plutus smart contracts to ensure full decentralization.
The launch of ADAX on the Cardano mainnet has marked a significant milestone for the network, as it continues to delve into decentralized finance (DeFi). The firm spent six months delivering the first DEX on Cardano that will work in favor of the ecosystem in the future.
ADAX enables on-chain swap execution and concentrated liquidity orders, allowing it to be a leading competitor in the DEX ecosystem in terms of efficiency and performance.
The DEX avoids congestion and concurrency-related issues by splitting each order into smaller unspent transaction outputs (UTXOs).
ADAX operates on the philosophy of decentralization, and will leverage the order-book model to ensure non-custodial and censorship-resistant trading.
Currently ADAX supports the Nami Wallet, but other wallets including GeroWallet and CCVault will be supported a few days after the launch.
ADAX hopes to follow the footsteps of Uniswap and PancakeSwap to be a go-to platform on Cardano with its unique feature offering. Cardano reached a total value-locked of over $70 million following the deployment of a competing DEX on Cardano, SundaeSwap.
Cardano price struggles to recover
Cardano price has formed a symmetrical triangle pattern on the 4-hour chart, suggesting that ADA is sealed in consolidation. The token has struggled to lift prices higher as it meets a stiff level of resistance.
The first hurdle for Cardano price is at $1.05, where the 21 four-hour Simple Moving Average (SMA) and 50 four-hour SMA meet. Additional obstacles for ADA may emerge at the 23.6% Fibonacci retracement level at $1.08, then at the 100 four-hour SMA at $1.19.
ADA/USDT 4-hour chart
Cardano may fall toward the lower boundary of the governing technical pattern at $1.00 next if selling pressure increases. Another foothold may appear at the January 24 low at $0.94.
Author
Sarah Tran
Independent Analyst
Sarah has closely followed the growth of blockchain technology and its adoption since 2016.
