The ADA token is experiencing a period of growth
While the cryptocurrency market was somewhat struggling, at the end of May 2022 there was some recovery in the value of a large number of cryptocurrencies. For example, Bitcoin, which we are used to seeing in value close to $28,000 or $29,000, has seen a roughly 10% increase in value in one week reaching a price that swings between $31,500 and $32,500. This bullish trend applies to a lot of cryptocurrencies, but it is especially true of Cardano (ADA) which saw a nearly 25% rise in value on May 31, 2022.
How do we explain the strong growth of the ADA cryptocurrency?
Recently, the blockchain leaders Cardano has not made any specific announcement that would explain the sudden move, but a number of observers see Cardano as an asset with a great future. If you are still ready to invest in this crypto, make sure to choose a reliable trading platform. To help you with your choice, Eclac experts have prepared a review on BitiQ, an upcoming trading tool, evaluating the website and its legitimacy.
In this article, we are going to talk about some of Cardano’s features and the upcoming big update that is expected to have a huge impact.
Cardano Updates
Cardano is a blockchain that is being used to evolve slowly and in the shadows. It is a project that maintains many relationships with the academic world, in particular with universities, and which announces some updates. This is a big difference with a lot of projects that regularly announce updates to adapt to the situation but sometimes they seem like short term fixes. These updates can be useful to overcome some issues but do not necessarily allow their blockchain to develop in a sustainable way. In Cardano’s case, it’s quite the opposite, and the goal of each update is to lay new foundations for the future.
In September 2021, Cardano released a major update that implemented the first smart contracts on the blockchain. This was a very important step for Cardano, who started developing a DeFi ecosystem on its network with the launch of several protocols. Today there are approximately 2,800 smart contracts On Cardano, which is not huge compared to a blockchain like Ethereum for example. Sure, but it should be noted that the number was almost three times less smart contracts In Cardano in April compared to today, only a month and a half ago! Cardano has grown slowly after its update but this strategy is starting to pay off and blockchain is entering a new dynamic.
Since the big update in September 2021, Cardano has only released a few small updates. A new big update, which should be the same size as the September 2021 update, is scheduled for June 29, 2022: this is the Vasil Hardfork update.
June 29 will be Vasil, a very important update for Cardano
June 29 will be a big change for Cardano that will allow its ecosystem to grow even faster. Vasil’s hard fork update will allow a lot of new decentralized applications (DApps) to develop on the Cardano blockchain, as it is an update that will significantly increase the scalability of the blockchain. We invite you to read the many resources on the Internet that will give you more information about the transformation this update will bring.
Cardano Blockchain’s Extraordinary Momentum
According to Charles Hoskinson, founder of Cardano, there are 937 projects under development on the Cardano blockchain. This number has doubled in the past two months. He added that today there are not many projects installed on the Cardano blockchain but many projects are waiting for the Vasil update to be completed. These projects are being developed in the shadows on the blockchain test network but will appear on the mainnet soon. This may relate to a very large number of protocols.
Don’t take the founder Cardano’s word for it, you can find a lot of information and statistics about the Cardano blockchain on a great website called Cardano Blockchain Insights. There you can see how the trend shows that the Cardano blockchain is progressing. See, for example, the evolution of the number of transactions on the blockchain or the growth in the number smart contracts on the blockchain in recent months.
What effect does this have on the price of Cardano?
The development of a more robust DeFi ecosystem on the Cardano blockchain should make the investors who believe in this project happy. This development will attract a lot of attention and attention to Cardano and many protocols will need ADA tokens to work which will have a positive impact on its price. The token will be used more for commission payments, staking and many other things. The more useful the Cardano blockchain is, the higher the demand for the Cardano token.
What expectations can we make for the ADA?
ADA, the Cardano token, is a long way from the value it used to be in the past. This was close to $3 in September 2021, at the time of the previous major blockchain update. Will Cardano’s price with this update see strong growth as it was at the time of its first update? This is not obvious because the context is completely different. At that time, Bitcoin and many other cryptocurrencies reached all-time highs. The news about Cardano and its update has boosted the price of its token and its consolidation in the top 10 cryptocurrencies in a sustainable way, but this sharp price hike has also accompanied an overall rally in the crypto sector. However, Vasil’s update, Cardano’s hard fork, should have a positive impact on ADA’s price. Selon nos estimations et celles de différents experts, au moment de la mise à jour et pendant les semaines qui vont suivre, le prix de Cardano pourrait s’approcher tranquillement du prix de 1 $ sans qu’il soit nécessaire des que crypt expap lemonna marché parallel.
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