In the wake of FTX’s collapse, data from the Cardano ($ADA) network reveals that the number of wallets on it has increased by over 100,000 so far this month, with users of cryptocurrencies apparently shifting their funds to wallets they control on-chain.
According to data from Cardano Blockchain Insights, the number of ADA wallets has recently grown by over 100,000, going from around 3.633 million at the beginning of the month, to over 3.73 million at the time of writing.
Following the demise of well-known cryptocurrency exchange FTX, which experienced a bank run this month, ADA wallet usage has skyrocketed on the network of the coin. FTX stopped making withdrawals as a result of the bank run and subsequently filed for Chapter 11 bankruptcy protection.
Following FTX’s bankruptcy filings, the cryptocurrency market experienced contagion, which negatively impacted trust in centralized platforms. BlockFi, a cryptocurrency lender, has halted withdrawals and announced that it will not be “able to operate business as usual” in light of the FTX bank run and the ambiguity surrounding the cryptocurrency exchange.
Despite this, the Cardano network has continued to expand and recently achieved a new milestone with the introduction of its first stablecoin. On the ADA network, new stablecoins are being developed. The commercial division of Cardano, EMURGO, revealed earlier this month that its new USD-backed stablecoin USDA would be “the first completely fiat-backed, regulatory compliant stablecoin in the Cardano ecosystem.”
According to EMURGO’s press release:
USDA “leverages the stability of the U.S. Dollar combined with Cardano’s security, low fees, and eco-friendly blockchain” and offers “locks in the value of investors’ crypto assets by pegging 1:1 to the U.S. dollar, reducing volatility, and unlocking fast global transactions without legacy banking and payment infrastructure delays.”
Similarly, Cardano developers announced at the Cardano Summit in Lausanne, Switzerland, that the algorithmic stablecoin Djed ($DJED) will debut on the mainnet of the smart contract platform early next year.
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