Cardano, Stablecoin 'All-Time High' After Security Update...Is ADA Eyeing $0.25?

▲ Cardano (ADA), Stablecoin, Cryptocurrency Security/AI Generated Image

As Cardano (ADA) completes its Hydra 2.4.1 security update, its stablecoin supply has surged to an all-time high, bringing renewed attention to the possibility of breaking through $0.25.

According to Benzinga on September 12 (local time), the Cardano development team released the Hydra 2.4.1 update, focusing on strengthening network security. This update fixed a critical bug that could have allowed invalid transactions to be included in confirmed snapshots. This vulnerability was pointed out as an issue that could open up the possibility of malicious network participants stealing funds.

Improvements to the development environment also continued. The Cardano High Assurance team released the first stable version of Plu-stan. This update focuses on reducing recurring issues when developing applications on Cardano. Charles Hoskinson, founder of Cardano, and the development team are trying to expand developer inflow through this.

However, actual network activity is still weak. Cardano's Total Value Locked (TVL) has decreased to $54 million, marking its lowest level since 2023. This is a significant gap compared to its all-time high of $700 million. In contrast, the stablecoin supply has surged from its yearly low of $36 million to $68.2 million, reaching an all-time high. However, its proportion is still limited compared to the total stablecoin supply of over $320 billion.

Technically, a rebound structure is forming. Cardano rose from its yearly low of $0.1362 recorded in June and formed an upward channel. The price is slightly above the 50-day and 100-day exponential moving averages, and the two moving averages are nearing a mini golden cross. If the upward trend continues, the psychological resistance level of $0.25 is presented as the next target.

Conversely, if it breaks below the lower bound of the upward channel, the recent recovery trend could falter. Ultimately, the key is whether technical improvements, including Hydra 2.4.1, lead to actual usage and capital inflow. While the stablecoin supply is clearly increasing, the fact that the Total Value Locked has decreased to a long-term low remains a challenge for Cardano to address.

[Article Key Summary]

-Cardano released the Hydra 2.4.1 security update, fixing a vulnerability that could have allowed fund theft.

-Cardano's stablecoin supply increased from its yearly low of $36 million to an all-time high of $68.2 million.

-With a mini golden cross of the 50-day and 100-day exponential moving averages imminent, $0.25 has been set as the upper target.

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