Cardano, a layer 1 smart contract network, has reached a historic milestone with the launch of Mehen USDM, a fiat-backed stablecoin. Mehen Token (USDM) is a digital token issued by Mehen Finance that is convertible into US dollars at a 1:1 ratio. USDM, as Cardano’s native token, can be transferred on the Cardano blockchain without the need for additional smart contracts. In a tweet announcing the arrival of the USDM stablecoin on Cardano, Mehen stated that institutional customers will immediately begin the onboarding process, which might take one-two days. This means USDM will gradually arrive on-chain during the week of March 18.
The USDM token is the first of its kind on Cardano. Unlike iUSD and DJED, Mehen USDM is not algorithmic or synthetic, but is fully backed by US dollars at a 1:1 ratio. Users will deposit dollars (USD) into their Mehen account, which Mehen will maintain in a separate account for token holders. Once transactions are completed, the user can mint an equivalent amount of USDM cryptocurrency tokens.
At the time of writing, ADA’s price has fallen 9.54% over the past 24 hours to $0.66, reflecting the broader market decline. According to cryptanalyst Ali, Cardano’s price behavior so far resembles the pattern observed from 2018 to 2021. He noted that if this fractal holds, ADA could consolidate in the $0.55 to $0.80 range in the coming weeks, followed by a rally to $1.70. Following this rise, a period of consolidation can be expected, paving the way for a breakout towards $5.
Image: Crypto Insiders
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