- A Cardano analysis tool has reported a low volume of DJED holders.
- The community is listing possible factors behind the low volume.
- The COTI network is not displeased by the reported number.
DJED launched in late January 2023 as the first native stablecoin on the Cardano (ADA) network.
On February 26th, 2023, Cardano analysis tool TapTools shared that the total volume of users holding DJED is only 882, further prompting the community to comment on whether the volume is a “surprise” or not.
The community is not only obliging with a number of responses to the prompt but is also dissecting the report by TapTools to figure out the reason behind the low adoption rate and whether the reported volumes are accurate.
DJED Adoption Delayed or Doomed?
The Cardano community is notoriously active in conversations on Crypto Twitter, and the debate about the volume of DJED holders is no exception.
In response to the claims by TapTools, Twitter user Lone Wolf has shared a critique that “DJED failed to be adopted” due to the high transaction minimum of 5,000 DJED / 5,000 SHEN for minting.
Claynation community member Belk tre has suggested that it would have been easier to buy DJED on Coinbase, hinting that the low volume of holders can be attributed to the accessibility of the stablecoin.
AI art collector Dom Stocchetti says the low volume of holders is surprising, but “incoming regulation of stablecoins is likely scaring people away.”
Beyond the responses from community members, the official developers behind the stablecoin have also commented on the tweet by TapTools.
The COTI Network is the official developer and issuer of the DJED stablecoin. In response to the claims by TapTools, COTI has opined that the adoption of DJED is “just getting started,” considering the stablecoin was launched less than a month ago.
COTI has suggested that DJED “already has more holders than stablecoins with market caps of hundreds of millions of dollars,” stating that they are, in fact, “very pleased” with the current figures.
Furthermore, COTI has noted that it is “unclear” whether the figures reported by TapTools include DJED and backing token SHEN holders holding tokens on DEXs, inferring that “the actual number could be even higher.”
Amidst the controversy around the volume of DJED stablecoin holders, the price of ADA has dipped 10.14% over the past seven days and is currently trading at $0.36.
On the Flipside
- Reserves for the DJED stablecoin appear to be in a sweet spot despite the reported low holder volumes, currently recording a 476% reserve ratio on the official website.
Why You Should Care
Cardano is a predominant blockchain in the decentralized space. The network’s DJED stablecoin illustrates real-world use cases for cryptocurrency.
Read more about DJED’s inner workings:
DJED: Cardano’s Decentralized Stablecoin
Read more about DJED’s official launch:
Cardano’s Djed Stablecoin Hits Official Release