ADA declines amid the proposal to convert 100 million dollars from the Cardano treasury into stablecoins

The founder of Cardano, Charles Hoskinson, suggested converting 100 million dollars in ADA into stablecoins and Bitcoin.

The capital reallocation strategy aims to boost Cardano's DeFi ecosystem.

ADA has decreased more than 4% in the last 24 hours and is now looking for support at $0.60 after having seen a rejection at the upper limit of a descending channel.

Cardano (ADA) fell 4% on Friday as Cardano's founder, Charles Hoskinson, proposed converting 100 million dollars in ADA into stablecoins and Bitcoin (BTC) to boost the stablecoin issuance of its ecosystem.

ADA falls 4% amid the Cardano treasury allocation proposal

Cardano co-founder Charles Hoskinson has suggested converting 100 million dollars in ADA tokens into Bitcoin and stablecoins. In a YouTube video on Friday, Hoskinson discussed the low issuance of stablecoins from Cardano within its DeFi ecosystem.

Cardano has a disproportionately low stablecoin issuance rate relative to our DeFi. It is just below 10%," said Hoskinson in the YouTube video recording.

There are approximately 31 million dollars in stablecoins on the Cardano network, compared to 273 million dollars in its total value locked (TVL), according to data from DefiLlama. Hoskinson also shared that the Cardano Foundation's treasury does not hold any income-generating instruments. This could be a significant issue for Cardano, particularly given the high market volatility in recent months, he stated.

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