Will Cardano expect dynamic increases? ADA price is up nearly 50% from lows around $0.40


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Will Cardano expect dynamic increases?  ADA price is up nearly 50% from lows around $0.40The Cardano network is approaching a significant improvement from the so-called ‘hard fork’, which the creators have given the name ‘Vasil’. What can we expect from this change and how will it affect the future of the project?

Cardano awaits new ‘Vasil’ hard fork

Cardano is a proven project, and its creator Charles Hoskinson believes in the long-term success and widespread adoption of cryptocurrency. At the same time, it indicates that it does not constitute direct competition Ethereum due to differences in the potential use of the two blockchains;

After the dramatic downfall of Luna, who was one of the “heroes” of the De-Fi token boom, market confidence may shift to older projects that have been in the market for many years and have solid foundations;

In the world of cryptocurrencies, so-called “event gatherings”. The price of cryptocurrencies rises as a project approaches a major milestone or change, then crashes as it is introduced. Speculators might refer to this phenomenon of price movement as “buying rumors selling facts”. At the same time, during the weakening of the market, which we are still observing, it is difficult to count on dramatic increases in altocoins such as Cardano, Chainlink, Uniswap and many others;

Altcoin prices tend to rise dramatically only when the market is almost certain that bitcoin is in a bull market. When investors have widespread doubts about this, Bitcoin offers a slightly “safer” exposure to the crypto sector, followed by smaller cryptocurrencies. At the same time, the “king of cryptocurrencies” can drag the whole market with him at any time;

Hard fork ‘Vasil’ is to introduce a number of changes including making Cardano a more scalable project and increasing network capabilities as part of the Hydra upgrade by increasing the possible number of transactions per second from 250 to 1,000,000. By comparison, the popular VISA network can process up to 75,000 per second, although in fact the network processes around 1,700 transactions per second;

The problems of the Solana chain, which has made an impressive rally among the top ten cryptocurrencies, show that the ability to smoothly process transactions on the network is very important. Currently, Solana developers are still working on fixing a clogged network, where the delay time recently reached 9 minutes. This is one of the reasons why Solana’s price has suffered particularly in the face of recent declines. The creators of Cardano have the ambition that the network will eventually handle thousands of payments per second;

Hoskinson repeatedly mentioned possible issues with projects that surfaced quickly and gained powerful ratings even faster. The creator known for sharing his thoughts with the market and fans also pointed out the risk of catastrophic failure if the industry continues to declare such dynamic development;

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Cardano is in technological competition with the relatively new BitGert project, which has become famous for its ability to process 100,000 transactions per second and is currently the fastest blockchain. The upcoming Hydra update will allow Cardano to outperform the competition in this regard. Additionally, nearly 500 different projects are currently under construction in the ecosystem, from smart contracts to DeFi service platforms to Metaverse platforms.

Potentially greater interoperability and the ability to maintain liquidity in the network may reward the Cardano blockchain as part of the growing metaverse trend and make the project attractive to developers and investors;

Hoskinson believes in the great potential of Africa as a continent with limited access to banking services. For this reason, this market can become a place of financial revolutions, such as cryptocurrencies, which are gaining popularity there. Cardano will try to capture as much of this market as possible.

Cardano chart, MN interval, source: xStation5
Cardano chart, MN interval, source: xStation5

The graph shows how much the project has lost since September 2021. At that time, the Alonzo update was introduced, which enabled the processing of smart contracts in the blockchain. This caused a massive surge of growth below the event in the summer of 2021. At the same time, we see that in May 2021 Cardano halted declines around $1 and hit a bullish rally as Bitcoin moved higher always laterally.

Today, a similar scenario with the Hydra and Vasil update looks less likely, market sentiment is uncertain and investors are also reluctant to take big risks. At the same time, however, Cardano introduced many interesting changes, positive news also concerned active accumulation by larger token holders.

Current price levels may prove appropriate for long-term investors, and the project has never seen a sell-off for so many consecutive months. The price has recently rebounded some of the declines and is up nearly 50% from the lows at around $0.40.

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