• Cardano head Charles Hoskinson stated decentralized identities (DIDs) are critical for the compliance of Travel Rules.
  • Hoskinson said that the appeal of DeFi is pushing more centralized players into pursuing decentralized identities.
  • Cardano price is preparing for an 8% rally, trading at $0.319 as buying pressure begins rising for the altcoin.

Cardano is also known as the third-generation cryptocurrency for its ability to combine all things crypto with DeFi providing a cheaper and far more scalable blockchain. While the world is yet to see a full-scale application of the same, Cardano’s CEO Charles Hoskinson continues believing in DeFi to be the future of crypto.

Charles Hoskinson on decentralized identities

Cardano’s co-founder recently engaged in a Q&A session, where Hoskinson mentioned that going forward, DeFi will play a crucial role in the crypto space. The first instance of the same was given in the form of the Financial Action Task Force’s Travel Rule. The set of rules used to prevent illicit transfers allows exchanges to hold the assets during transactions. 

Hoskinson stated that if the customer was to transfer assets off of the exchange into a self-custodial wallet, they could lose access to their cryptocurrencies. To prevent this, a decentralized identity could be added to the transactions.

Charles Hoskinson believes that this can be done on a transactional level between regulated and non-regulated entities. He further added that centralized industry players are even more pursuant of decentralized identities.

As reported by FXStreet, earlier this month, Singapore conducted its first-ever institutional DeFi trade with JP Morgan, SBI and DBS Bank. This was done with the use of verifiable credentials, which dictated who could and who could not participate in the transaction.

Commenting on the prospect of DeFi going forward, Hoskinson stated,

“It’s going to be one of the most competitive areas in the space in the next 24 months.”

Cardano price could be heading toward recovery

Cardano price noted an almost 4% increase in price in the last 24 hours, bringing the altcoin to trade at $0.319. The altcoin is nearing a flip of its immediate resistance at $320, which would be crucial in ADA’s attempt at recovery.

If the $0.320 hurdle is flipped into a support floor, Cardano price would have the opportunity to mark an upswing toward $0.333. Acting as the critical resistance, reclaiming this level would allow ADA to initiate a run-up toward $0.344, marking an 8% rally.

ADA/USD 4-hour chart

ADA/USD 4-hour chart

However, if the bearish momentum builds up again and prices take a hit, ADA could end up tagging the support level at $0.315. It would also lose the support of the 30 and 50-day Exponential Moving Averages (EMAs). 

Bulls will have another chance to save Cardano price from further decline by bouncing off of the $0.298 mark. But a daily candlestick close below this level will invalidate the bullish thesis, resulting in the altcoin tagging the lows of $0.285.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP