Cardano now has a new DEX (called ADAX) five months after enabling Smart contracts on the platform. Part of the official announcement from the Cardano team indicated that the new DEX is an integral part of the long-term development of the Cardano community. The Cardano team had previously launched a testnet for the ADAX platform last year and promised to launch the mainnet before the end of this month fully, a promise they have kept.
A Huge Accomplishment By The Network
Cardano’s Plutus smart contract is the basis of the ADAX, which enables complete decentralization. The network’s launch of the ADAX represents a considerable accomplishment to make a significant foray into the DeFi space. The new DEX’s concentrated liquidity orders and on-chain swap execution make its performance more efficient as it aims to be one of the top DEX’s globally.
ADAX splits each order into bits of unspent transaction outputs (UTXOs) to ensure smooth transactions and prevent concurrency-related problems. The DEX utilizes an order-book model to prevent custodial and censored trading as a decentralized platform. As of this writing, the only wallet that works with ADAX is the Nami wallet. But some days after the launch, the CCvault, Gerowallet, and other wallets would also become functional.
The ADAX team plans to develop and launch an offering that makes it the only option on the Cardano network with a unique feature offering as Uniswap and Pancakeswap. Besides having a DEX offering, ADAX also has a CEX offering where tokens’ projects can be traded. Some Cardano-built projects already have their tokens listed on ADAX’s CEX.
Competing With The Top Dogs In The DeFi Space
ADAX is also planning to launch an NFT marketplace and has already partnered with Vyfinance to launch digital collectibles where token rewards will be in ADAX or Vyfi. Following the launch of the Sundaeswap five months ago, Cardano’s TVL is now nearly $75m.
The launch of this new DEX will likely push this TVL higher. The ADAX developers are still seeking feedback from the Cardano ecosystem regarding areas of the new DEX where improvements are still required. The launch of this new DEX makes Cardano a top competitor for ETH, SOL, and BSC, which also have their DEX platforms.
ADA Price Action
The 4-hour timeframe indicates that ADA is consolidating as it shows a symmetrical triangle on the 4-hour timeframe. ADA price has remained range bound for some time as it cannot overcome its next crucial resistance. The $1.06 level represents ADA’s next critical resistance as it is the price that connects the 21-day SMA and 50-day SMA on the 4-hour timeframe.
ADA price action on the 4-hour chart. Source: TradingView
ADA’s next crucial resistances would be the 0.236 Fib retracement level at $1.07 and the 100-day SMA on the 4-hour chart at $1.18. ADA’s next critical support will be at the $0.99 and $0.93 levels if the selling pressure intensifies. As of this writing, ADA exchanges hands at $1.03, a decline of about 4.8% in the last 24 hours.