Cardano Makes Waves with USDM: A Fiat-backed Milestone

Cardano, a leading cryptocurrency by market capitalization, achieved a historic milestone with the launch of USDM, the first fiat-backed stablecoin on its network. According to the tweet,  USDM, issued by Mehen Finance, is a digital token that maintains a 1:1 peg to the U.S. dollar.

#CardanoCommunity,$USDM IS HERE!

policyID – c48cbb3d5e57ed56e276bc45f99ab39abe94e6cd7ac39fb402da47ad

assetName – 0014df105553444d pic.twitter.com/gnkh4NikDS

— $USDM on Cardano (@MehenOfficial) March 17, 2024

USDM, a Cardano stablecoin, distinguishes itself from algorithmic or synthetic counterparts by deriving its underpinnings from tangible US dollar holdings. Mehen’s distinctive approach mandates users fund their accounts directly with the company, keeping those deposits segregated and overseen. This enables them to mint USDM tokens on the Cardano blockchain at a 1:1 ratio after the capital injection.

Furthermore, USDM’s debut signifies a pivotal milestone for Cardano’s burgeoning ecosystem, furnishing a steadfast digital currency tailored for decentralized finance (DeFi) endeavours and quotidian transactions, which could catalyze augmented expansion and embracement as Cardano’s user base and developer community swell.

With the onboarding procedure estimated to take one to two days, institutional investors are already in line to join USDM. This implies that throughout the week of March 18, USDM coins will progressively surface on the Cardano blockchain.

The arrival of USDM follows the spectacular ecosystem development of Cardano. Stablecoins on Cardano had a 37% increase in value in the most recent quarter compared to the previous one and an astounding 673% year-over-year increase.

Cardano Price Action

At the time of writing, Cardano’s price today is $0.677080, with a 24-hour trading volume of $1.81B and a market cap of $22.90B; the ADA price decreased—-3.20 % in the last 24 hours.

Furthermore, crypto analyst Ali Martinez believes Cardano’s price action resembles the pattern observed from 2018 to 2021. Moreover, Ali expects Cardano’s native token ADA to consolidate between $0.55 and $0.80 in the coming weeks, followed by a rise to $1.70. After this increase, a period of consolidation could pave the way for a breakthrough to $5.

So far, #Cardano resembles the pattern observed from 2018 to 2021.

Should this fractal continue, anticipate $ADA to consolidate in the $0.55 to $0.80 range in the coming weeks, followed by a surge to $1.70. After this upswing, expect a period of further consolidation, setting… pic.twitter.com/46LIp2hkMx

— Ali (@ali_charts) March 16, 2024

Moreover, with the launch of USDM, Cardano solidifies its position as a leading smart contract platform. It offers developers and users a secure, scalable, sustainable ecosystem for building decentralized applications.

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