The possibility of launching a stablecoin on the Cardano network has gone from rumor to major news, as Charles Hoskinson said that it would increase demand for ADA. The CEO of IOHK said that the company has been “thinking about stablecoins” for the past seven years and seems to be seriously considering it.
Charles Hoskinson expresses interest in launching a stablecoin on Cardano
A new stablecoin could be introduced to the crypto market, and it might just be launched on the Cardano network. Charles Hoskinson, the CEO of IOHK, the company behind Cardano, expressed interest in hosting a stablecoin on Cardano’s blockchain in a recent tweet, saying that both he and the company have been considering the idea for years. Hoskinson said:
“If we do this, then it will blow everyone out of the water. I started in this space with stablecoins and we’ve been thinking about them for seven years.”
The talk about a Cardano-based stablecoin began with a tweet from Weiss Crypto Ratings, a ratings and analytics company focused on cryptocurrencies. On Feb. 11, the company said that there were rumors that Hoskinson was looking to build a version of DAI stablecoin on Cardano.
The company noted that there is a need for more trustless stablecoins in the crypto market, as coins like DAI have no trusted point of failure. This, the tweet said, gives it a huge advantage over other stablecoins such as USDT and USDC.
Having a stablecoin on Cardano would increase demand for ADA
Launching a version of DAI on Cardano spread like wildfire on Twitter, with the news making headlines on most crypto media. The hype surrounding stablecoins and Cardano had an even harder time calming down when Hoskinson addressed the issue again, explaining that such a project could have huge benefits both for Cardano as a network and for ADA holders.
The Cardano Report, a Cardano-focused news outlet, asked Hoskinson how such a project would benefit ADA holders, as it was unclear whether the project would be separate from Cardano.
Hoskinson said that the prospective stablecoin that gets launched on Cardano could use its native cryptocurrency, ADA, as part of its Central Bank mechanism. This, he explained, would create more demand for the underlying asset, increasing both ADA’s price and its use-cases.
Amid a Successful Upgrade, Cardano [ADA] is Steps Away From Total Decentralization
Cardano is just some few steps away from complete decentralization following the successful hard fork and the subsequent implementation of Ouroboros BFT.
This update links the Byron phase with Shelly, a critical phase that readies the platform for smart contracting capability while ensuring complete node distribution, an edge in blockchain circles.
Ouroboros is the first Proof-of-Stake consensus algorithm that is backed by research with baked-in security.
Cardano developed from the ground up
Unlike Ethereum, which was forked from Bitcoin and improved, Cardano was developed from the ground up.
Beginning in 2017 when the foundation was set with Byron, the Cardano development team led by Charles Hoskinson under Input Output Hong Kong (IOHK) has been unwavering and resilient.Advertisement
For example, in the great crypto winter of 2018 when projects were folding following deep price slumps, the team assured the crypto community of their will to wade through bad asset prices—as it wasn’t their motivation, and achieve the bigger picture.
Delays mark their development: Quality over Speed
Since then, Cardano has trudged through their roadmap despite occasions of delays.
With Shelly integral to Cardano, IOHK and Charles have repeatedly stated that quality supersede speed.
Although they had timelines, he explained, the team would not be tied and instead launch when underlying code has been satisfactorily audited, and processes confirmed.
The announcement of the successful implementation of Ouroboros BFT is therefore yet another milestone, a few weeks after a successful Proof of Stake incentivized test net.
Shelly Phase will make Cardano 100X decentralized than Bitcoin
The test net proved without a doubt that the Cardano network could reward their users once Shelly is operating at full throttle.
Aside from that, there will be a delegation scheme in place. Combined, Shelly will eventually be 50-100X more decentralized than Bitcoin.
Bitcoin uses a different consensus algorithm: Proof-of-Work. Critics have an issue with its energy intensive nature.
Even so, it remains sturdy, robust, and with enough participation, hacker proof. At equilibrium, Cardano should have 1,000 stake pools.
Compared, leading Proof-of-Work systems are centralized with less than 10 pools controlling processes.
Cardano says the Shelly era “represents the natural maturation of the network, making it more useful, rewarding, and valuable for users new and old.”
Cardano Latest Update – Cardano Successfully Launches OBFT Hard Fork In Preparations For Cardano Shelley Era
- Cardano Launches OBFT
- ADA Price Update – ADA price unstable after BTC price crash
- A Milestone For Cardano
- Is An ADA high looming?
Cardano Testnet – The CEO of IOHK, Charles Hoskinson celebrates the successful launch of the OBFT hard fork on Twitter. The launch of this hard fork serves as a stepping stone to the realization of Cardano Shelley. Also, it bridges Byron with the coming Cardano Shelley era. The upgrade of Cardano’s Proof-of-Stake (PoS) protocol occurred on February 20 without obstructing ADA token users. The OBFT fork was installed on the federated Byron mainnet.
Cardano Staking – the launch of the OBFT hard fork denotes a development of the original Ouroboros Classic protocol and permits Cardano to move close to seamlessly switching to centralization. Cardano testnet – IOHK’s Tim Harrison stated that the Cardano network would be able to attain higher transaction speed as well as its convenience after the upgrade.
OBFT Launch Is A Milestone For Cardano
Cardano testnet – Notably, this hard fork is only one of the network upgrades that are slashed out before the launch of the Cardano Shelley era. Although the exact launch date is yet to be set, these upgrades are projected to be released in about two months. The Shelley mainnet, which will be run by the Ouroboros Genesis Protocol, is projected to change the Cardano testnet into the most decentralized blockchain project. It will permit the Cardano community to choose their validators through staking.
ADA Price Update – ADA price unstable after BTC price crash
Cardano Price Prediction – ADA token is beneath the top ten cryptos by market cap, but for the past few days, the ADA price movement is quite unstable. The price movement got bad after yesterday’s crash of BTC by about $800. In the past 24-hour ADA price has recorded about 6% losses while the market has been unstable after BTC clash.
Cardano (ADA) Price Today – ADA / USD
Cardano Price Today – ADA commenced a price decline towards the $0.059 level as it failed to seek support required to sustain the price above the $0.060 level. After the slow decline towards the $0.600 levels, the BTC flash crash further affected the market, and ADA price declined as low as $0.0567.
Is An ADA high looming?
Cardano Price Prediction 2020 – although ADA price recovered back to the $0.0590 levels before the end of the day, it was unable to sustain the same level. ADA is facing a major resistance at $0.05936, if the support levels hold, ADA price is available for a better position on the day. However, if the support fails to assist ADA token break past the major resistance level, it would be a rough path for ADA price.
Cardano Price Analysis – ADA Rebounds After Consensus Protocol Upgrade
- Cardano witnessed a meteoric 15% price surge over the past 24 hours of trading, allowing it to climb back into the crypto top 10
- The latest price increase caused ADA to break above resistance at the 200-day EMA
- Cardano is now certainly bullish after creating a fresh 4-month high
|⠀Key ADA resistance levels:||$0.06, $0.064, $0.068, $0.070, $0.0714|
|⠀Key ADA support levels:||$0.057, $0.0542, $0.050, $0.0477, $0.045|
*Price at the time of writing
Cardano ADA, 4.92% saw a small 1.7% price rebound over the past 24 hours of trading, bringing the price for the cryptocurrency up to the $0.058 level. It had dropped by a steep 15% over the past week after rolling over at resistance at $0.071.
Cardano recently announced that they would be upgrading their consensus model to the Ouroboros Byzantine Fault Tolerance (OBFT) consensus protocol. Well, Charles Hoskinson, founder of Cardano, announced today that OBFT is now live.
Cardano price analysis
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What has been going on?
Taking a look at the daily chart above, we can see that Cardano rebounded from support at $0.032 at the start of the year as it went on to increase by a total of 122% to reach the 2020 price high of $0.072. The resistance here is provided by a bearish .618 Fibonacci Retracement level and is further bolstered by a 1.414 Fibonacci Extension level that lies slightly beneath it.
After rolling over at this resistance, we can see ADA fell further lower until finding support at the short term .382 Fibonacci Retracement level priced at $0.0571.
Cardano price short term prediction: Bullish
Cardano remains bullish, especially after rebounding at $0.057. It would need to drop beneath $0.0477 before being in danger of turning bearish.
If the sellers do start to break beneath $0.057, the next levels of support lie at $0.0542 and $0.0524 (.5 Fibonacci Retracement level). This is then followed up with support at the 200-day EMA at $0.05.
Beneath this, support is expected at $0.0477 (.618 Fib Retracement & 100-day EMA), $0.045, and $0.0409 (.786 Fib Retracement).
Where Is The Resistance Toward The Upside?
On the other hand, if the bulls continue to push higher above $0.06, the first level of resistance lies at $0.0645. Above this, resistance is expected at $0.0684 (1.272 Fib Extension level) and $0.07.
If they continue to drive above $0.07, higher resistance is located at $0.071 (1.414 Fib Extension) and $0.0726 (long term bearish .618 Fib Retracement & 2020 high).
If the bullish pressure continues higher, resistance can be expected at $0.0757 (1.618 Fib Extension), $0.08 and $0.08388 (bearish .786 Fib Retracement).
What Are The Technical Indicators Showing?
The RSI recently dipped beneath the 50 level as the bears start to gain some traction of the momentum. However, with the recent rebound at $0.057, we can expect the RSI to climb back above the 50 level soon as the bullish momentum starts to increase.
Additionally, the Stochastic RSI is in extremely oversold conditions and is primed for a bullish crossover signal that should also help send the market higher.
What has been going on?
Against Bitcoin, we can also see that Cardano has been on the offensive after starting the year at 447 SAT and climbing as high as 694 SAT. The resistance here is provided by a long term bearish .382 Fibonacci Retracement level and is further bolstered by a 1.272 Fibonacci Extension level.
After reversing at the aforementioned resistance, Cardano started to fall as it reached support at 596 SAT (.382 Fib Retracement). We can also notice that the 200-day EMA is providing additional support beneath.
ADA/BTC price short term prediction: Bullish
Cardano also remains bullish against Bitcoin. For the bullish run to continue higher, we must see it breaking above the 700 SAT level. IF Cardano was to drop beneath 542 SAT (100-day EMA) it is in danger of turning neutral.
If the sellers do push beneath the support at 596 SAT and the 200-day EMA, we can expect additional support at 566 SAT, provided by a .5 Fib Retracement. This is then followed with additional support at 542 SAT (100-day EMA), 500 SAT, and 493 SAT (.786 Fib Retracement).
Where Is The Resistance Toward The Upside?
On the other hand, if the bulls rebound and push above 650 SAT, the first level of resistance lies at 694 SAT (long term bearish .382 Fib Retracement). If they continue above 700 SAT, resistance can be found at 719 SAT (1.414 Fib Extension), 750 SAT, 760 SAT (1.618 FIb Extension), and 786 SAT (bearish .5 Fib Retracement)
If the bullish pressure continues to drive ADA above 800 SAT, resistance can then be found at 850 SAT, 879 SAT (bearish .618 Fib Retracement), and 900 SAT.
What Are The Technical Indicators Showing?
Similarly, the RSI has dropped beneath the 50 level to show that the previous bullish momentum has faded. However, the recent bounce from 596 SAT should help to push the RSI back above the 50 level and allow the bulls to regain control of the market momentum.
Additionally, the STochastic RSI recently produced a bullish crossover signal in oversold conditions which is a strong sign that the bulls are ready for another push higher.