- Cardano suffered a setback as the long-awaited stablecoin launch was postponed.
- ADA’s price, sentiment and protocol activities bore the brunt of the news.
On January 9, an X (formerly Twitter) post from Matthew Plomin revealed the launch of Cardano’s [ADA] stablecoin USDM was postponed.
Good morning #cardano.
People deserve a clear explanation why $USDM is delayed.
Here is our transparent answer:
The $USDM Delay and why it matters for Cardano’s future https://t.co/PBZXBBDC2u
— M₳tthΣw Plomin | $USDM launching when it’s ready (@MatthewPlomin) January 9, 2024
The post attributed the setback to audit recommendations from Sundae Labs. Additionally, Cardano’s development team cited the need for multiple changes to the smart contracts governing the stablecoin.
These adjustments, coupled with the necessary testing time and holiday-related delays, have left the stablecoin’s future uncertain. However, Cardano may be considering a new target launch date: March 16, 2024.
What now?
The delay has raised questions about Cardano’s ability to adhere to timelines, potentially impacting the project’s credibility and ADA’s value.
Investors and enthusiasts, who were eagerly awaiting the launch of the stablecoin, may now reconsider their expectations and confidence in the Cardano blockchain.
State of Cardano
The delay cast an understandable shadow over Cardano’s overall market sentiment. In particular, there was a marked decline in the network’s protocol activity and transactions.
This reduction in user activity could pose challenges to the growth and sustainability of Cardano’s ecosystem in the future
Cardano also faced setbacks in the decentralized finance (DeFi) space, with declines in Total Value Locked (TVL) and Decentralized Exchange (DEX) volumes.
The decline in TVL suggested reduced user engagement and capital inflows, impacting the vibrancy of the DeFi ecosystem on the Cardano network.
Source: Artemis
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ADA’s price also took the brunt of the recent news as it fell 4.58% over the past 24 hours to trade at $0.503109 at the time of writing.
The speed of ADA transactions decreased, indicating a slowdown in overall network activity. This negative price movement indicated declining investor confidence in ADA and Cardano as a whole.
Source: Santiment