Despite the recent setbacks, the cryptocurrency sector continues to expand, led by the developments and innovations of major ecosystems such as the Cardano (ADA) network, which has recently renewed its stablecoin tests.
As it happens, the testnet version 1.1.1 of the Djed stablecoin has been reactivated to include new capabilities, such as Vasil hard fork compatibility, activity history, and more, according to the announcement shared by the Djed team on December 6.
Djed is the first algorithmic stablecoin to be issued on Cardano’s proof-of-stake (PoS) blockchain, and the recent reactivation of its testnet has also included the display of DJED and SHEN (the reserve coin) logos and icons on the Nami wallet used by the Djed testers.
Its whitepaper from August 2021 describes Djed as “an algorithmic stablecoin protocol that behaves like an autonomous bank that buys and sells stablecoins for a price in a range that is pegged to a target price.”
Going live in January 2023
According to COTI, Cardano’s partner on the stablecoin development, the mainnet version of Djed is expected to go live in January 2023 after a successful audit. During the Cardano Summit in November, COTI’s CEO Shahaf Bar-Geffen commented on the mainnet date, stating:
“Recent market events have proven again that we need a safe haven from volatility, and Djed will serve as this safe haven in the Cardano network. Not only do we need a stablecoin, but we need one that is decentralized and has on-chain proof of reserves.”
According to Bar-Geffen, “Djed is just that,” and he believes it could become “the top stablecoin on the Cardano network, considering all of the integration partnerships already signed for it.”
Cardano ecosystem’s continuous growth
It is also worth noting that Cardano has recorded the highest development activity among all blockchains during the month of November, recording 572 generated events in its public GitHub repositories.
Earlier, Finbold reported on Cardano’s steady increase in Plutus smart contracts as well, growing their total number by more than 300% in 2022, counting 4,239 scripts as of December 6.
What’s more, in November, the Cardano builder Input Output Global (IOG) announced the establishment of the world’s first blockchain decentralization index, followed by the team opening of a new resource section for Plutus DApp developers.
ADA price analysis
Meanwhile, Cardano’s native token ADA is currently changing hands at the price of $0.3116, down 1.74% on the day and 0.99% across the previous seven days, adding up to the monthly loss of 23.49%, as the asset follows the larger market sentiment.
Whether the mainnet launch of Cardano’s over-collateralized algorithmic stablecoin will manage to get the investors more excited about its decentralized finance (DeFi) token and deliver a bullish rally in early 2023, remains to be seen.
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