Cardano’s Upcoming Stablecoin Feature will Beat Ethereum?

  • Cardano’s $Djed launch will occur in the latter half of January 2023.
  • Cardano launching the stablecoin’s payment platform DjedPay.

Since the beginning of 2023, Cardano (ADA) front news updates have been positive, with a bunch of future development in its ecosystem. Cardano investors are excitedly awaiting the release of $Djed, the network’s first algorithmic stablecoin, which may challenge the largest altcoin, Ethereum ($ETH). 

These crypto-monsters, Cardano and Ethereum, are parallel in appearance and functionality and both are “Layer 1” blockchain technologies. That enable developers to create self-executing smart contracts and decentralized apps (dApps) on their blockchains. Also, $ETH and $ADA use proof-of-stake (PoS) consensus techniques for their blockchains.

Staking is a more ecologically friendly alternative compared to Bitcoin’s ($BTC) proof-of-work (PoW) consensus method. PoW consumes a lot of electricity to solve complicated problems for validating and completing blockchain transactions.

Future Development in Cardano

Crypto industry heavyweights Cardano and Ethereum are among the top 10 cryptocurrencies by market capitalization. Additionally, Cardano founder Charles Hoskinson is one of the members of the Ethereum developers. 

However, Cardano developer, Input Output HK (IOHK), collaborated with COTI, the world’s first platform that optimized for creating price-stable coins. According to COTI, Djed is an over-collateralized algorithmic stablecoin tied to the USD. It utilizes SHEN as its reserve currency and is backed by Cardano’s native coin, $ADA, to reduce the impact of $ADA’s price fluctuations. 

Further, on January 12, 2023, IOHK announced the launch of the first version of its custom-built toolkit, enabling developers to build sidechains on the ADA network. Also, the Cardano community hinted that the $Djed anticipated launch will occur in the latter half of January 2023.

Moreover, Cardano $ADA maintains its bullish trend and surged over 37% in the last 14 days. At the time of writing, $ADA traded at $0.349595 with a market cap of $12 billion, as per CoinGecko.

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