Cardano’s DJED Stablecoin Surges, Raising Questions on Network Growth

Cardano’s DJED stablecoin sees 100% surge, but network activity declines.
Concerns arise over Cardano’s sustainability amid falling transactions and development.
ADA’s market cap and social volume drop, signaling potential challenges for Cardano.

Cardano‘s native stablecoin, DJED, has experienced a notable surge in trading volume, marking a 100% increase in the past 24 hours. Despite this rapid growth, concerns arise as overall network activity, including daily active addresses and transaction numbers, has seen a significant decline over the last few weeks.

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The growth of DJED aligns with an increased focus on the decentralized finance (DeFi) sector within the Cardano ecosystem. The total value locked on Cardano has risen from 200 million to 326 million, primarily driven by the popularity of decentralized exchanges (DEX) on the network. However, Artemis data indicates that despite the uptick in DEX volumes, overall network activity has waned.

Daily active addresses on Cardano dropped from 52,000 to 39,000, impacting transaction numbers and subsequently reducing fees generated on the network by 20.4% in the last week. This decline in fees could affect the economic health of Cardano, impacting incentives for validators and stakers, and raising concerns about the network’s sustainability and user retention.

Furthermore, Cardano’s development activity has seen a substantial decline, with code commits falling by 41.7% in the last month. This reduction may hinder the network’s ability to introduce new features, address bugs, and stay competitive in the dynamic blockchain landscape.

While ADA, Cardano’s native cryptocurrency, currently trades at $0.4718, showing a 0.5% growth in the last 24 hours, the slowing velocity of trading and a decrease in social volume around ADA suggest a potential decline in popularity.

As Cardano’s stablecoin witnesses unprecedented growth, questions arise about the network’s overall health and its ability to sustain growth in the rapidly evolving cryptocurrency ecosystem. Traders and stakeholders closely monitor these developments to assess the long-term viability of Cardano’s ecosystem.

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Lauren Cole

A focused and vigilant storyteller for all things blockchain and cryptocurrency. Besides consuming every piece of literature about the metaverse, she can often be found at industry convections looking for the latest scoop.