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DeFi to become the "most competitive" as per Cardano CEO Charles Hoskinson.

Decentralized identities (DIDs), according to Cardano CEO Charles Hoskinson, are essential for ensuring that the Rules are followed.

Photo by Markus Spiske / Unsplash

Decentralized identities (DIDs), according to Cardano CEO Charles Hoskinson, are essential for ensuring that the Rules are followed.

Why Defi, exactly?

According to Hoskinson, more centralized players are chasing decentralized identities due to the attractiveness of DeFi. Cardano's price is poised for an 8% increase and is now trading at $0.319 as purchasing an interest in the cryptocurrency increases. Due to its capacity to combine all things cryptocurrency with DeFi, which offers a less expensive and significantly more scalable blockchain, Cardano is also referred to as the third-generation cryptocurrency. While widespread implementation of the same has yet to be seen, Cardano CEO Charles Hoskinson believes that DeFi will dominate the crypto industry.

Charles Hoskinson and decentralized identities

During a recent Q&A session (1), Hoskinson, the co-founder of Cardano, stated that DeFi would go on to play a significant role in the cryptocurrency industry. The Financial Action Task Force's Travel Rule was the first example. Exchanges are permitted to keep the assets during transactions thanks to the restrictions implemented to stop unauthorized transfers. According to Hoskinson, consumers risked losing access to their cryptocurrency if they moved funds from the exchange to a self-custodial wallet. A decentralized identity might be incorporated into the transactions to stop this.

According to Charles Hoskinson, this may be accomplished on a transactional level between regulated and unregulated entities. He continued by saying that participants in centralized industries are even more interested in decentralized identities. Singapore and JP Morgan completed its first-ever institutional DeFi deal earlier this month (2). Verifiable credentials were used to do this, and they set the rules for who could and could not participate in the transaction. Hoskinson said the following in response to the potential of DeFi moving forward. In the next 24 months, it will be one of the most competitive regions in the market.

The price of Cardano could recover.

Cardano's price (3) increased by approximately 4% on the previous day, putting it at $0.319 at the time of writing. The alternative currency is on the verge of a quick flip. Resistance at $320 would be significant for ADA's effort at a comeback. Cardano's price would have the chance to indicate a rise toward $0.333 if the $0.320 barrier were to turn into a support floor. Regaining this level would enable ADA to start a run-up toward $0.344, constituting an 8% rally, acting as the crucial resistance.

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However, ADA can wind up snagging the support level at $0.315 if the negative trend increases again and prices decline. Additionally, the 30 and 50-day exponential moving averages would stop supporting it (EMAs). Bulls will have another opportunity to stop the price of Cardano from falling by bouncing off the $0.298 level. But if the daily candlestick closes below this level, the bullish argument will be refuted.