Cardano (ADA) Leads Altcoin Party Hitting New All-Time High

20. Aug 2021 Posted by Akolkar B on News

Cardano (ADA) has proved to be the underdog of the altcoin space and has smashed a new all-time high of $2.53 gaining more than 20% over the last 24 hours. The recent rally in the ADA price has help it become the third-largest cryptocurrency by market cap.

Cardano has been clearly the altcoin party and of the top performing altcoins in 2021. Since the beginning of 2021, Cardano’s ADA cryptocurrency has surged 14x or 1300%. The recent price rally in Cardano comes as the blockchain is all set to undergo the Alonzo hard fork earlier in September next month, as confirmed by founder Charles Hoskinson.

The Alonzo hardfork will bring the much-awaited smart contract functionality to the Cardano blockchain. This will help to increase the network utility and performance exponentially. Majorly it will unlock new opportunities in the decentralized finance (DeFi) space thereby attracting more DeFi players to the platform.

Often dubbed as the Ethereum-killer, Cardano is truly emerging to be one! Interestingly, Cardano is taking some important measures to expand its network ecosystem.

On Thursday, Cardano’s parent group IOHK unveiled the blockchain’s new stable coin Djed. The Djed stable coin will be competing with market players like Tether and USDC. Unlike other stable coins, the Cardano’s Died stablecoin will address the major issues of transparency, reserves, and liquidity.

The official announcement notes: “Djed is a crypto-backed algorithmic stablecoin contract that acts as an autonomous bank. It operates by keeping a reserve of base coins, and minting and burning stablecoins and reserve coins”.

The functioning of the Djed stablecoin will be like an Autonomous “Central bank-like” contract. The most important thing is that Cardano’s ADA stablecoin won’t be pegged to a single stablecoin. “It can work with other currencies, as long as there are oracles providing the contract with the corresponding pricing index,” notes IOHK.

Cardano co-founder Charles Hoskinson said that they have already formed a Plutus team which will be working after the Djed stablecoin. The Cardano stablecoin will come in two versions:

  • The first is the simple and intuitive version aka the minimal Djed.
  • The other is an extended Djed which will offer higher stability and more incentives to maintain the reserve ratio at an optimum level.

Having launched it as a testnet project, Cardano will implement its stablecoin on multiple blockchains like Binance Smart Chain, Polygon, Ethereum, Avalance, etc.