- Cardano’s DJED stablecoin sees a 100% increase, but network activity declines.
- Concerns arise about Cardano’s sustainability amid declining transactions and development.
- ADA’s market capitalization and declining social volume signal potential challenges for Cardano.
Cardano’s native stablecoin, DJED, has seen a notable increase in trading volume, marking a 100% increase in the last 24 hours. Despite this rapid growth, concerns arise as overall network activity, including daily active addresses and transaction numbers, has seen a significant decline in recent weeks.
JUST IN: Cardano $ADA stablecoin DEJD $DJED daily volume exceeds 725,000 ADA.
— Adverse news | Cardano and Ergo News (@AdaverseNews) January 24, 2024
DJED’s growth aligns with an increased focus on the decentralized finance (DeFi) sector within the Cardano ecosystem. The total value locked on Cardano increased from 200 million to 326 million, mainly due to the popularity of decentralized exchanges (DEXs) on the network. However, Artemis data indicates that despite the increase in DEX volumes, overall network activity has declined.
Daily active addresses on Cardano dropped from 52,000 to 39,000, impacting transaction numbers and consequently reducing commissions generated on the network by 20.4% in the last week. This drop in fees could impact Cardano’s economic health, impacting incentives for validators and stakers and raising concerns about the sustainability of the network and user retention.
Additionally, Cardano’s development activity has seen a substantial decline, with code commits declining by 41.7% over the past month. This reduction could hinder the network’s ability to introduce new features, fix bugs, and remain competitive in the dynamic blockchain landscape.
While ADA, Cardano’s native cryptocurrency, is currently trading at $0.4718, showing growth of 0.5% over the past 24 hours, slowing trading speed and a decrease in social volume around ADA suggest a potential decline of popularity.
As Cardano’s stablecoin witnesses unprecedented growth, questions arise about the overall health of the network and its ability to sustain growth in the rapidly evolving cryptocurrency ecosystem. Merchants and stakeholders are closely monitoring these developments to assess the long-term viability of the Cardano ecosystem.
