As a company dedicated to blockchain technology, $ADA is facing the issue of insufficient liquidity for stablecoins. Despite good on-chain indicators, the recent fluctuations in ADA prices have raised concerns among investors.

2. Djed Stablecoin

Djed is the highly anticipated algorithmic stablecoin on Cardano, designed to maintain its value close to 1 dollar through an algorithmic mechanism. It will hold a reserve of underlying assets and mitigate volatility by mining and burning other stable assets. Djed has two versions: one used as a medium of exchange and the other using dynamic rates to respond more quickly to external events.