Cardano’s USDM stablecoin launches today in US

Cardano (ADA) breached the $0.8 resistance on Thursday after trading below it for 21 months, although it then corrected quickly following a broader pullback in cryptocurrency prices. However, on the weekly timescale, Cardano’s price appears to be on an uptrend, which could be further supported by the upcoming launch of its stablecoin, USDM, in the United States.

The launch of Cardano’s USDM in the United States takes place today

Mehen Finance LLC plans to roll out the USDM stablecoin in 19 states in the US with a direct fiat on-ramp to the Cardano ecosystem. The currency is fully fiat-backed, with each USDM pegged 1:1 to the United States Dollar (USD).

The launch, first announced in October, is poised to attract new users to the smart contract blockchain platform and give them access to enhanced Web3 features previously impossible on Cardano.

Additionally, USDM will serve as a major boost to Cardano’s DeFi ecosystem, which has suffered from slow growth due to a lack of crypto infrastructure. It would serve as a reliable trading partner for projects within Cardano, attracting more users and increasing liquidity in the process. This could also serve as a signal to DeFi protocols that have been skeptical about launching on the blockchain platform.

Active portfolios reach an important milestone

A few months ago, in September 2023 to be precise, active wallets on Cardano were at a low of around 300,000. However, with the launch today on Saturday, that number has crossed over to 600,000, a high last seen in September 2022, according to data from Danogo, a DEX on Cardano.

The total value locked (TVL) on Cardano is also growing steadily, with all top 10 protocols posting gains in the last 24 hours. Indigo, MinSwap and Liqwid lead other protocols on the platform by a wide margin in terms of TVL.

The recent improvement in network activity also comes as ADA briefly breached the $0.8 resistance on Thursday, pushing its treasury past the $1 billion mark, although these values ​​fell slightly after prices corrected on Friday. Considering the potential impact of the US USDM rollout on the Cardano community, the price increase may indicate a correlation with improved on-chain activity.