Analysts turn bullish on ADA as gold-backed stablecoins come to Cardano

Analysts turn bullish on ADA as gold-backed stablecoins come to Cardano

Photo by Rene Böhmer on Unsplash

Analysts turn bullish on ADA as gold-backed stablecoins come to Cardano

During a crypto summit held by British financial newspaper City A.M., decentralized finance (DeFi) liquidity protocol MELD has announced a three-way partnership with Tingo Holdings, Nigeria’s largest mobile network, and Ubuntu Tribe, an ethical crypto company that tokenises natural resources.

As a part of the new partnership, the Cardano-based DeFi protocol, which enables users to lend, borrow and stake their assets, has revealed plans to launch a gold-backed stablecoin.

Cardano’s stablecoins

“Our goal here is simplicity and clarity,” said Ken Olling, chairman and co-founder of MELD, who wants to make trading accessible to anyone with a smartphone. 

“Gold will be stored in a vault, tokenized and then fractionalised and divided so we can sell it,” he clarified.

“It’s a simple idea, but incredibly powerful because you can count on it,” added Olling, pointing to gold’s stable value.

As recently revealed during the Cardano Summit 2021, by none other than Cardano’s founder, Charles Hoskinson, ADA payment gateway platform COTI will become the official issuer of the network’s long-awaited stablecoin Djed, described as an algorithmic token for proven price stability.

According to the Cardano developer team, IOHK, Djed’s features, which include upper and lower bound maintenance, robust design in the event of market crashes, no insolvency, and no reserve drain possible, are provable by mathematical theorem.

Boosted adoption

According to the head of marketing at Cardano Foundation, David Taylor, who shared the announcement on Twitter, the new partnership with Nigeria’s largest mobile network will introduce MELD’s crypto services to millions of active subscribers, boosting Cardano’s adoption in the country, 

Following the latest developments in the ecosystem, the number of ADA holders reached a new all-time high (ATH) recently.

Cardano’s native token has 243,000 holders, with 70% of the wallet addresses holding the crypto recording profits, IntoTheBlock’s data revealed.

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