Djed expands to EVM-compatible sidechain: Gauging its implications on ADA

• Djed stablecoin was deployed on Cardano’s EVM-compatible sidechain.
• Cardano’s trading volume and price have recently shown a downtrend, but ADA’s trend remained bullish, albeit weak.

Djed, Cardano [ADA] network’s stablecoin, recently announced a significant development: it will be deployed to an Ethereum Virtual Machine (EVM) compatible sidechain. This news raised important questions about its implications for Cardano, its native cryptocurrency ADA, and the stablecoin.

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Djed deploys on the Cardano side chain

Djed Alliance made a major announcement on 29 April, revealing its latest stablecoin protocol deployment. The Djed Stablecoin was available on Milkomeda-C1, an EVM-compatible sidechain of the Cardano network.

This marked the third deployment for the stablecoin, but it was particularly noteworthy as the first deployment on Solidity. This development opens the door for future expansion onto numerous other EVM-compatible blockchains.

CoinMarketCap’s data indicated that the stablecoin had a circulating supply of over 3.2 million as of this writing. Moreover, in the past 24 hours, it had seen a trading volume of roughly $97,000 and an over 30% decline in volume in the last 24 hours.

Djed adds to Cardano’s TVL

Djed’s recent deployment on an EVM-compatible sidechain of Cardano is a significant development that could extend the stablecoin’s utility beyond Cardano’s ecosystem. It could also offer greater liquidity to the ecosystem. According to DefiLlama’s data on Cardano’s total value locked (TVL), Djed ranked as the fifth-highest contributor. 

As of writing, the TVL was at an impressive $154.73 million, and Djed Stablecoin had contributed $15.59 million to this figure. The TVL has been on an upward trend recently, although a slight downtrend has been observed as of this writing. These figures reflected the increasing adoption and usage of Djed Stablecoin in the decentralized finance (DeFi) space on Cardano’s blockchain.

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Volume and price movement of ADA

Recent trends in Cardano’s (ADA) trading volume, according to Santiment, have shown a downtrend in the past few days. As of this writing, the volume stood at around 156 million, dropping significantly from over 500 million on 27 April. 

Source: Santiment

Along with the volume, the price had also been declining lately, trading at roughly $0.40 at press time, with a decline of less than 1%. Despite this dip, the trend remained bullish, albeit a weak one.

Source: TradingView