Cardano (ADA) is the first bridge to the Ethereum (ETH) ecosystem. The stablecoin DJED, which was launched at Cardano in January, now also works in the Ethereum Virtual Machine (EVM).
Stablecoin DJED’s team describes the recent progress made in development work as a “significant milestone” on Twitter. And indeed, the message behind it is an encouragement for Cardano (ADA). Because DJED was only established at Cardano in January and is now opening the first direct connection to the Ethereum (ETH) ecosystem.
If you want to read more details about Cardanos’ DJED stablecoin and its availability in the Ethereum ecosystem, download for free our companion app. The Born2Invest mobile app keeps its readers up to date with the latest financial news in the world, so they can stay on top of the market.
Technologically, this bridge is anything but trivial
In cooperation with the crypto company Milkomeda, DJED was placed on a Cardano sidechain, which controls the Ethereum Virtual Machine (EVM). Milkomeda announced its EVM-compatible sidechain for Cardano in April and DJED is now exploiting this innovation. This also makes it possible for users who were previously restricted to DApps under ADA to expand their activities natively towards Ethereum. EVM has become the standard for DApps and DeFi and is not unique to Ethereum. In the future, DJED will also have links to EVMs in other blockchains.
However, Cardano’s price curve showed no visible reaction to technological advances. ADA repeatedly bounced off the psychologically important $0.45 mark in 2023 and is currently trading a frightening 87 percent below the all-time high of just over $3 in September 2021. Even if Cardano founder Charles Hoskinson preaches optimism and recently NFTs as the most important Use case for ADA propagated, the results remain modest. In the Decentralized Finance (DeFi) sector, Cardano has invested just over $150 million, and compared to Ethereum ($28 billion) the ADA ecosystem is a dwarf.
Conclusion: Is DJED in the EVM really a game-changer for Cardano?
DJED is designed as an algorithmically secured stablecoin and is therefore not only viewed critically in the Cardano community. DJED currently has a market cap of $15 million, so it’s basically a midget.
Whether a run by ADA investors on the EVM will start, as Milkomeda had hoped, is anything but certain. Because there are no compelling arguments why you should control the EVM with DJED and not rely on proven solutions such as Ethereum itself or Polygon (MATIC). Cardano, with its massive market cap of $13.5 billion, continues to seek monetary applications that differentiate it from other popular altcoins.
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First published in BLOCK-BUILDERS.DE, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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