Cardano’s governance gets questioned; Charles Hoskinson responds with…
- Cardano gets criticized for its governance proposal.
- Charles Hoskinson responds, ADA gets impacted by FUD.
Vanessa Hariss, a Senator at Team Kujira (a decentralized ecosystem for protocols), on 5 March claimed that the Cardano governance was not centralized.
In a Twitter thread, she stated that IOG (Input Output Global), the company behind Cardano’s formation, could dominate a large part of Cardano’s governance.
Read Cardano’s [ADA] Price Prediction 2023-24
According to her, this dominance and subsequent lack of centralization in governance would be occurring due to the CIP-1694 proposal.
As per Vanessa, the CIP-1694 proposal will be giving away a lot of power to Cardano’s Constitutional Committee. The Constitutional Committee, which comprises of insiders from IOG, would be able to veto any governance action, except motions of no confidence and calls for a new committee.
Vanessa stated that replacing the committee would be a difficult task and that a no-confidence vote would require a large majority of representatives.
Due to these factors, she asserted that under the CIP-1694 proposal, IOG would always retain control of Cardano, except in rare situations.
She also mentioned that ADA stakers will not be afforded a platform to participate in the governance affairs of Cardano.
The stakers would have to pay a fee to a Delegated Representative or become a Delegated Representative themselves to participate in Cardano’s governance.
Well, much to the surprise, Charles Hoskinson responded quickly to these claims. He dismissed these statements saying, “This is categorically false and a great example of how FUD spreads.”
In a response to Charles’ tweet, many users have requested for a Twitter space to be held where all these doubts about the Cardano governance can be clarified.
Fear, Uncertainty, and Clout
Meanwhile, all the talk about the Cardano governance affected the sentiment around ADA. According to Santiment’s data, the weighted sentiment metric declined over the past few days.
Furthermore, the volume of ADA also fell. Over the last month, it decreased from 258.69 million to 185.69 million, at press time.
During this period, ADA’s price showed a strong correlation with its volume, falling 16.61%. This led to ADA’s price volatility gradually increasing.
Realistic or not, here’s ADA’s market cap in BTC’s terms
Now, if the price volatility continues to rise, ADA could become an increasingly risky asset to buy.
How Cardano [ADA] shrugged off losses, extended growth hike across board
- ADA’s price significantly increased as whale transactions reached a monthly peak.
- Holders of the last 30 days jumped into gains.
After enduring a long period in red, Cardano [ADA] investors finally had their day of respite. At the time of writing, the native token of the Proof-of-Stake (PoS) blockchain registered a 9.14% uptick in the last 24 hours. Only Ripple [XRP] outperformed it out of the top 10 cryptocurrencies in terms of market capitalization.
How much are 1,10,100 ADAs worth today?
Stagnant development activity, but whales act as liberators
Although ADA may have edged out the bears, the escape was not without backing from activity on its network. Input Output, the project’s development arm put out a tweet about the Dynamic peer-to-peer (P2P) rollout on the Cardano Mainnet.
ICYMI: Cardano’s network is evolving and Dynamic P2P is now rolling out on mainnet. SPOs can now test automated connections of #Cardano nodes.
Find out more in this blog post: https://t.co/jbc8E15Hox
— Input Output (@InputOutputHK) March 21, 2023
According to its 16 March explanation of the P2P feature, the Charles Hoskinson-led project was a further boost to the network’s performance and decentralization The blog post also noted that the Dynamic P2P would minimize communication delays, and maximize the network’s strength against failures.
Meanwhile, the Cardano community has been testing the functionality, which requires updating the node version to 1.35.6. The presence of the node means that Cardano users can perform P2P transactions without the need for a development network protocol.
However, the project’s development activity stayed put at 81.17. The metric tracks the public GitHub repositories of a project while measuring commitment by developers.
But Cardano’s seemingly stagnant position did not mean it was worse off, as ProofofGitHub ranked it only behind Polkadot [DOT].
GitHub Daily Development Activity:
#1: 1169 Polkadot / Kusama
#2: 671 Cardano
#3: 648 Internet Computer
#4: 562 Status
#5: 411 Decentraland
#6: 408 Hedera
#7: 397 Cosmos
#8: 381 Audius
#9: 381 Ethereum
#10: 368 ChainLink pic.twitter.com/NaGKQ5dyxs
— ProofofGitHub (@ProofofGitHub) March 22, 2023
Furthermore, ADA whales seem to have been influential in the token’s price action. This was because Santiment showed that transactions in the $100,000 range have been increasing since 19 March. In fact, this metric hit a monthly high of 433 on 21 March, even though it had decreased to 219 at press time.
At last, a folder without the reds
The whale activity points to increased interest in the token. And subsequently, this leads to buying pressure, which is eventually reflected in the token value.
At press time, ADA exchanged hands at $0.372 — a point it had struggled to reach since 14 March. Following the price rise, the ADA 30-day Market Value to Realized Value (MVRV) ratio heeded in a similar direction.
Is your portfolio green? Check the Cardano Profit Calculator
The metric acts as a prominent indicator for traders to determine an undervalued or overvalued state of an asset. Moreso, it also reflects the gain rate recorded within a specific period.
Hence, the MVRV ratio increasing to 3.605% implied that a notable number of investors who accumulated in the last 30 days were now in profit.
Biggest Movers: XRP Surges To Strongest Point Since November
Xrp moved to its highest point since November, as markets reacted to news suggesting a verdict could be near in Ripple’s case with the Securities and Exchange Commission (SEC). Cardano was also higher on Wednesday, hitting a one-month high.
XRP rose to its highest point since November, as markets continued to react to the latest news surrounding Ripple’s case with the SEC.
Following a low of $0.4199 on Tuesday, XRP/USD raced to an intraday high of $0.4914 earlier in today’s session.
This is the strongest point that the token has reached since November 6, when prices were retreating from a high above $0.50.
Overall, earlier gains have since eased, which comes as bulls failed to sustain a breakout on the 14-day relative strength index (RSI).
At the time of writing, the index is tracking at 65.14, which is below the aforementioned ceiling at 70.00.
The 10-day (red) moving average remains in an uptrend despite the marginal decline, which sees XRP currently trading at $0.4459.
Cardano (ADA) was once again higher in today’s session, as the token jumped to a one-month high.
ADA/USD moved to a peak of $0.387 on Wednesday, which comes a day after falling to a low at $0.349.
Today’s surge saw bulls push cardano to its highest level since February 23, when price was at a peak of $0.393.
Looking at the chart, it appears that the climb coincided with the 10-day (red) moving average crossing over its 25-day (blue) counterpart.
In addition to this, the 14-day RSI is now tracking at 60.93, which is its highest reading since mid-February.
A ceiling at 53.00 may await for bulls should momentum continue in this current direction, which could put a stop to the run.
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Could cardano begin to change direction in the upcoming days? Let us know your thoughts in the comments.
Eliman was previously a director of a London-based brokerage, whilst also an online trading educator. Currently, he commentates on various asset classes, including Crypto, Stocks and FX, whilst also a startup founder.
Image Credits: Shutterstock, Pixabay, Wiki Commons, CryptoFX / Shutterstock.com
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Will Djed make the most of stablecoin turmoil? Here’s what the metrics say
- Djed didn’t lose its USD peg during the recent turmoil in the stablecoin market,
- Djed’s TVL saw gains of 17% since the USDC depegging saga,
Cardano’s [ADA] stablecoin Djed, which launched earlier this year, may soon expand to other layer-1 networks like BNB Chain [BNB] and Ethereum [ETH].
Read Cardano’s [ADA] Price Prediction 2023-24
The CEO of COTI, the firm which developed Djed in collaboration with Input Output HK (IOHK), said that the expansion was always part of the project scope but they will work towards it with greater focus.
The CEO added that they received several requests from non-Cardano DeFi protocols to have the stablecoin launched on their blockchains.
“Djed will be on other chains as well. Obviously on Ethereum and Binance Smart Chain just to name a few…because defi ecosystems need a stablecoin that is stable and [email protected] $Djed $Shen $Ada $Coti @COTInetwork pic.twitter.com/eS8j3bxHNJ
— 𓊽 Djed 𓊽 (@DjedStablecoin) March 20, 2023
Chance to thrive?
The recent developments in the stablecoin ecosystem put the focus towards entities which remained reliable throughout the chaos. One of them was Djed, which didn’t lose its USD peg.
Infact at one point in time, it traded at a premium against the USD, per date from CoinMarketCap. During periods of high demand, stablecoins tend to go above their pegged value.
On the other hand, coins like USD Coin [USDC], DAI, and FRAX lost their dollar peg during the turmoil.
Djed had a 487% reserve ratio, implying that each Djed was backed by more than four times its value in ADA. There were more than 33 million ADA coins in reserves.
The over-collateralization mechanism was meant to provide protection to Djed against fluctuating market conditions, similar to the one which brought about a downfall of TerraClassicUSD [USTC] last year.
However, it should be noted that Djed was still a newcomer on the horizon. Its trading volume was a fraction of that of other established coins like USDC and DAI, which played a big part in making it immune to macroeconomic triggers.
How much are 1,10,100 ADAs worth today?
Djed’s contribution to ADA
Djed’s total value locked (TVL) saw gains of 17% since the USDC depegging saga, data from DeFiLlama revealed. At the time of writing, it accounted for 8% of the total TVL on the Cardano blockchain.
At press time, ADA traded at $0.3449, a marginal increase of 0.15% from the previous day. Bullish sentiments for the coin were back as the number of long positions vis-à-vis the short positions increased.
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