With the introduction of Mehen’s USDM, a fiat-backed stablecoin, Cardano—a Layer-1 smart contract network that seeks to offer security, scalability, and sustainability to decentralised applications—has reached a significant milestone.
Mehen Finance has launched the Mehen token (USDM), a digital store of value that is 1:1 convertible to US dollars. No extra smart contracts are required for the transfer of USDM, a Cardano-native cryptocurrency, on the Cardano blockchain.
Mehen announced the launch of the USDM stablecoin on Cardano in a tweet, stating that institutional clients would start the onboarding process right now, maybe taking a day or two. This indicates that throughout the week of March 18, USDM will progressively appear on-chain.
https://x.com/MehenOfficial/status/1769159056483086608?s=20
Cardano’s introduction of USDM marks a turning point in the platform’s adoption as it grows its ecosystem and draws in more developers and consumers.
Remarkably, the USDM cryptocurrency is the first of its type on Cardano. Mehen’s USDM is completely backed by US dollars at a 1:1 ratio and is not algorithmic or synthetic like the iUSD and DJED. Dollars (USD) are added by users to their Mehen accounts, which Mehen keeps in a separate account just for token owners. The user can mint an equal amount of USDM cryptocurrency tokens when the transactions are finished.
The ecosystem expanded significantly in the most recent quarter, as seen by the 37% QoQ and 673% YoY increase in Cardano’s stablecoin value. The market for Cardano stablecoins has a lot of potential to develop now that Mehen’s USDM stablecoin has launched.
ADA price action
As of this writing, ADA has down 9.54% to $0.66 over the previous day, reflecting losses in the larger market.
Cardano’s current price behaviour, in the opinion of cryptocurrency expert Ali, is similar to the trend seen between 2018 and 2021. According to Ali, ADA may stabilise between the $0.55 to $0.80 region in the coming weeks before rising to $1.70 if this pattern continues. A period of stabilisation may be anticipated after this surge, opening the door for a breakthrough to $5.
