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Cardano Token Holders Deliver Strong Support to new DeFi Platform

By:
Bob Mason

DeFi platform MELD draws interest from the Cardano community, with Cardano (ADA) also finding strong support as ADA wallet holders hit 3 million.

Depositphotos_382263438_s-2019

Late last week, MELD (MELD) launched a DeFi platform for the unbanked on Cardano (ADA).

— Cardano Today (@cardano_today) February 4, 2022

What is MELD?

MELD is a DeFi, non-custodial, banking protocol. Users can securely borrow and lend both crypto and fiat (USD and EUR), while also allowing MELD token holders to stake and earn yields and rewards from MELD staking pools.

MELD offers crypto holders crypto-collateralized cash loans or credit lines, with interest payable on what is used. The platform uses smart contracts to deliver transparency and fairness.

While focusing on DeFi, users will also soon be able mint Bank Manager NFTs on the MELD platform. Those who participated in the Initial Stake Pool Offering (ISPO) will be eligible to mint Bank Manager NFTs.

Interest in MELD Surges at Launch

Within 3 days of launching, MELD tweeted that Cardano (ADA) users have staked 100 million MELD tokens. While the MELD tokens are now locked in, stakers not only receive yield and rewards but are also able to use the staked tokens as collateral for fiat currency loans.

To date, exchanges FMFW.io and Bitrue have listed MELD. With the platform’s goal of enabling more than 2 billion unbanked individuals to gain access to crypto-asset lending products, more will likely follow.

Cardano (ADA) Price Action

At the time of writing, ADA was up 2.28% to $1.165. This morning’s moves came off the back of a 7.35% rally on Friday, supported by the broader crypto market.

Price predictions for ADA are bullish for the year ahead. The 6th largest crypt by market cap, surged by 620% in 2021. It could have been far better, however, with ADA striking an ATH $3.097 in early September before ending the year at $1.30 levels.

Cardano’s entry into the DeFi space and the Alonzo upgrade were key to the 2021 gain. Analysts are bullish about the year ahead, with ADA striking a current year high $1.638 on 18th January before succumbing to crypto market forces.

Recovering from a current month low $1.071, however, ADA’s move back through to $1.16 levels brings January’s high into play. A move through January’s high would then give ADA a run at $2.00 levels last visited back in November.

Looking at the EMAs and 4-hourly candlesticks, it’s looking a bit more bullish. Going into the weekend, ADA has broken out from the 50-day EMA and the 100-day EMA, testing resistance at the 200-day EMA. A move through the 200-day EMA, currently at $1.18 would support the return to November levels.

For ADA, news of increased Cardano network usage is a plus. Overnight, Cardano announced the number wallets holding ADA hitting 3 million.

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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