01 Mar 2023
Cardano Monthly report - February 2023
Let's have a look at the top Cardano stories making news in February.
Cardano, one of the world's most popular blockchain platforms, has seen several significant developments in February 2023. One of the most notable is the integration of Clay Nation, an NFT project on Cardano, into The Sandbox Game, a virtual world where players can create, own, and monetize their gaming experiences on the Ethereum blockchain. The move is expected to promote Web3 interoperability.
Clay Nation, which has seen remarkable success since its inception, also released a full-length music video in collaboration with rapper Snoop Dogg and Champ Medici.
Another significant development in February is the overcollateralized stablecoin Djed (DJED), based on Cardano. The stablecoin has garnered over 31 million Cardano (ADA) coins as backing since its mainnet launch at the start of the month.
The reserve ratio is currently at 515%, which means that each Djed is backed by more than five times its value in ADA. Djed employs SHEN as its reserve coin and is pegged to USD. The Djed team claims that 2023 will bring two releases and more development for the overcollateralized stablecoin.
In the below image, we see how the price of $Djed performed over the month of February. As $Djed is a stablecoin, we'd want to see the token holding at $1 throughout the month. We can see that near the beginning of the month the price dropped as low as $0.98, but given the newness of the token and how quickly it rebounded this shouldn't be a reason for concern. For most of the month, $Djed appeared to hold steady, so time will tell how long this algorithmic stablecoin can hold its peg.
Cardano co-founder Charles Hoskinson also made headlines in February. Hoskinson expressed his disappointment with the stubborn take of people on staking and clarified that a KYC regime is not implemented on Cardano through contingent staking and does not take the place of standard staking.
Hoskinson suggested the “contingent staking” model, which would incorporate KYC practices. In this model, both the delegate and the staking pool operator would have to sign a two-sided transaction certificate before it is processed. The proof-of-concept test network is now live, and interested community members and stake pool operators on Cardano are invited to connect their wallets, test the network and interact with smart contracts and decentralized applications.
Overall, Cardano has had an eventful February, with significant developments in NFTs, stablecoins, and staking. After some positive price action since the launch of Djed, the token has settled in the $0.35 - $0.40 price range for most of the month. The Cardano community looks forward to further growth and development in the coming months, enabled by all the work being done on interoperability and side chains.
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