Is It True That Cardano Needs A “USD-Backed Stablecoin” Like USDT To Rally?

In a post on X, analyst Cardano Yoda believes that a USD-pegged stablecoin is crucial for ADA’s future success, suggesting that its integration could trigger a bull run sometime in 2025.

A stablecoin, a token that’s “stable” since its price is pegged to a fiat currency like the USD or Euro, will ignite activity, driving decentralized finance (DeFi) and even non-fungible token (NFT) activities even higher. With a popular stablecoin like USDT or USDC deployed on the proof-of-stake blockchain, the number of users interacting with Cardano dapps will likely spike, catalyzing demand since ADA is used for paying fees.

How To Get Free Crypto  

Stablecoins, Input Endorsers, And Hydra Might Prop Up Cardano In The Long-Term

The presence of a high market cap stablecoin can facilitate seamless value transfers and reduce volatility. Already, networks like Ethereum, Tron, and Solana have been more active as billions of stablecoins like USDT, USDC, USDD, and even DAI are minted by network users. For this reason, their respective DeFi and NFT ecosystems command higher total value locked (TVL) with individual protocols managing billions of dollars. 

To illustrate, DeFiLlama data shows that Ethereum and Solana DeFi ecosystems have TVL of $32 billion and $1.3 billion, respectively. Meanwhile, though improving, Cardano has a TVL of $337 million. For context, one of Ethereum’s largest DeFi protocols facilitating stablecoin exchange, Curve, manages over $1.6 billion in TVL.

Ethereum DeFi TVL | Source: DeFiLlama

Beyond stablecoins, the analyst also emphasized the current development of Input Endorsers and the eventual deployment of Hydra. In the Basho stage, Cardano’s lead developer, IOG, continues to refine the network. One critical development to improve performance is Input Endorsers. This feature further enhances on-chain scalability and transaction processing speeds by introducing a parallel validation process, effectively removing bottlenecks. 

On the other hand, Input Endorsers will be complemented by Hydra, an off-chain scaling solution similar to Ethereum’s approach with layer-2s. Through Hydra, IOG said Cardano will scale horizontally while remaining secure and decentralized.

Coinbase Banner  

Becoming Cross-Chain, Will ADA Find Support At $0.50

These moves could support ADA prices in the days ahead. Already, Cardano is looking to expand its ecosystem. In November 2023, it partnered with Polkadot, a cross-chain platform. 

This partnership will provide a means for seamless communication and asset transfers. At the same time, the resulting interconnectedness and interoperability may further drive adoption, boosting the two ecosystems.

Cardano price trending lower on the daily chart | Source: ADAUSDT on Binance, TradingView

So far, ADA is steady, finding support at around the $0.50 area. Technically, the uptrend remains. However, for the breakout above the current bull flag, there must be a sharp move up above $0.55 with increasing trading volume.

Feature image from Canva, chart from TradingView

Go to Source
Author: Dalmas Ngetich

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

FreeBitcoin Banner  

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

You May Also Like

More From Author

This site uses Akismet to reduce spam. Learn how your comment data is processed.