Called the Decentralised Stablecoin of Polkadot, Acala (ACA) is an all-in-one decentralised finance (DeFi) network that offers an array of services through the Acala Mandala application.
The Ethereum-compatible protocol can generate the best from the various smart contract-enabled blockchain and other DApps, which operate on the Ethereum Network. It offers seamless interoperability between blockchains such as liquid DOT and aUSD. The aUSD is the primary stablecoin of Polkadot and Kusama blockchains and is aimed to provide liquidity and utility.
On 11 April, the token was witnessing a downward slump again. It was down by 4%, however, there was a volume gain of over 90%.
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Why is ACA crypto struggling?
Although the exact reason for the ACA crypto slump is still unknown, the protocol had recently announced its Acala Kickoff Rewards Program, wherein the users get a chance to earn 1 million in ACA tokens. The rewards program will allow the liquidity providers of the protocol an opportunity to earn additional income.
Many thought that this would catapult the token to a rally. However, it has not managed to do so. This comes after a week’s loss, wherein it was down by 0.4% in the past seven days. This seems to have dented the token, which was in green 14 days back.
The Acalas chain is designed in such a manner that it primarily allows DeFi protocols to be customised. At the same time, a few features can be integrated without the need to take permission from the developers. Besides, the holders of ACA tokens also get voting rights. The voting rights allow the users to express their opinions on the future governance of the protocol.
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How is ACA token faring today?
At the time of drafting, the token was trading at US$1.63 with a 24-hour trading volume of $84,065,627, as per CoinMarketCap. The 371-ranked token was down by 4.84%, with a live market cap of US$112,909,826. ACA token, which is available for trading on Binance, OKX, Bybit, Bitget, and Huobi Global, has 69,304,481 ACA coins in circulation.
ACA investors would hope that this downward slide is a short one and it can quickly get back on its feet. The mixed pattern of slump and rise showcases these tokens are volatile. Cryptocurrencies traditionally are viewed as a risky and volatile market. Therefore, one must tread carefully before making a move in the market.
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