Cardano: Will rising DEX volumes bear fruit for ADA?
- Cardano’s DEX volumes surged amidst discussions about stablecoins on the network.
- USDM, a Cardano-based stablecoin, confirmed its launch updates.
Cardano [ADA] witnessed a substantial decline in its price over the past month, even amid the renewed interest in altcoins. Despite this correction, there could be optimism for ADA as interest in its ecosystem expands.
Surge in volumes
One indicator of the growing demand in Cardano’s ecosystem was the rising popularity of its decentralized exchanges (DEX). A popular DEX on Cardano, Minswap demonstrated a surge in daily volume, surpassing 10.5 million ADA.
This uptick in DEX volumes presents a positive outlook for Cardano, indicating increased activity and engagement within its ecosystem.
JUST IN: Cardano $ADA DEX Minswap $MIN daily volume surpasses 10.5 million ADA.
— Adaverse News | Cardano and Ergo News (@AdaverseNews) January 14, 2024
However, there were some bumps in the road for Cardano in the DeFi sector.
Stablecoin season
The delay in the launch of the USDM stablecoin initially impacted Cardano and the sentiment around its DeFi sector.
However, with a newly proposed launch date, the introduction of a Cardano native stablecoin like USDM holds the potential to enhance the DeFi landscape on the Cardano protocol.
$USDM, Cardano’s Premiere Fiat-backed Stablecoin, is launching March 16th, 2024.
— Jillian Plomin || Mehen CEO (@Mehen_CEO) January 14, 2024
Furthermore, discussions surrounding the potential implementation of USDC on Cardano also emerged. Such developments can further contribute to the growth and adoption of Cardano, expanding its utility and appeal.
However, despite these developments, stablecoin growth on the Cardano protocol witnessed a decline according to Artemis’ data.
The proposed launch of USDM and the potential integration of USDC may aid Cardano in improving in this sector going forward.
Source: Artemis
Moreover, Cardano also faced challenges in other areas. Daily active addresses on the network experienced a decline, and transactions also saw a reduction.
This decline in network activity could impact overall engagement and participation within the Cardano ecosystem.
Source: Artemis
Additionally, fees generated on Cardano also took a hit, contributing to the negative aspects of the network’s performance.
The decrease in fees can impact the incentives for network validators and potentially affect the overall health of the Cardano blockchain.
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At the time of writing, ADA was trading at $0.53776, witnessing a 1.26% decline in the last 24 hours.
The trading volume for ADA also experienced a decrease, reflecting the current challenges faced by Cardano in maintaining market activity.
Source: Santiment
