The ADA token is experiencing a period of growth
While the cryptocurrency market was quite in trouble, there was some rebound in the value of a large number of cryptocurrencies at the end of May 2022. For example, Bitcoin, which we used to see worth close to $ 28,000 or $ 29,000, has seen an almost 10% increase in value in a week to reach a price that fluctuates between $ 31,500 and $ 32,500. This bullish trend is true for many cryptocurrencies, but it is especially true for Cardano (ADA) which saw a roughly 25% increase in value on May 31, 2022.
How to explain the strong growth of the ADA cryptocurrency?
Recently, Cardano blockchain leaders haven’t made any specific announcements that would explain this sudden move, but some observers see Cardano as an asset with a big future. If you are still ready to invest in this cryptocurrency, be sure to choose a reliable trading platform. To help you in your choice, Eclac experts have prepared a review on BitiQ, an upcoming trading tool, in which they evaluate the website and its legitimacy.
In this article we will talk about some features of Cardano and the big update coming that should have a big impact.
Updates on Cardano
Cardano is a blockchain used to develop slowly and in the shadows. It is a project that maintains many relationships with the academic world, especially universities, and which announces few updates. This is a big difference with many projects announcing updates very regularly to suit the situation but sometimes appearing to be short term repairs. These updates can be helpful in overcoming certain problems but do not necessarily allow their blockchain to develop sustainably. In the case of Cardano it is quite the opposite, the goal of each update is to lay new foundations for the future.
In September 2021 Cardano rolled out a major update that had implemented the first one smart contracts on the blockchain. This was an extremely important step for Cardano, which had started developing a DeFi ecosystem on its network with the launch of several protocols. Today there are about 2,800 smart contracts on Cardano, which isn’t huge compared to a blockchain like Ethereum for example. Of course, but it should be noted that they were almost three times less smart contracts on Cardano in April compared to today, only a month and a half ago! Cardano has grown slowly since its update, but this strategy is starting to pay off and the blockchain is entering a new dynamic.
Since the big update in September 2021, Cardano has only rolled out a few minor updates. A big new update, which is expected to be of the same scale as the September 2021 update, is scheduled for June 29, 2022 – this is the Vasil Hardfork update.
On 29 June it will be Vasil, a very important update for Cardano
June 29 will be a significant change for Cardano that will allow its ecosystem to grow much faster. The Vasil update, hard fork will allow the development of many new decentralized applications (DApps) in the Cardano blockchain, because it is an update that will greatly increase the scalability of the blockchain. We invite you to read the many resources on the internet that will give you more information on the transformation that this update will bring.
Extraordinary momentum for the Cardano blockchain
According to Charles Hoskinson, the founder of Cardano, there are 937 projects in development on the Cardano blockchain. This figure has doubled in the past two months. He added that to date there are not many projects installed in the Cardano blockchain but many projects await the completion of Vasil’s update. These projects are being developed in the shadows on the blockchain test network, but will soon come to light on the main network. This could affect a very large number of protocols.
Don’t take Cardano’s founder’s word for it, you can find loads of information and statistics about the Cardano blockchain on a great website called Cardano Blockchain Insights. There you can observe how the trend shows that the Cardano blockchain is progressing. Look, for example, at the evolution of the number of transactions carried out on the blockchain or the growth in the number of smart contracts on the blockchain in recent months.
What impact on Cardano’s price?
Developing a much more powerful DeFi ecosystem on the Cardano blockchain should make investors who believe in this project happy. This development will draw a lot of interest and attention to Cardano, and the numerous protocols will need ADA tokens to function, which will have a positive impact on its price. The token will be used mostly for the payment of commissions, staking and many other things. The more useful the Cardano blockchain grows, the greater the demand for the Cardano token will be.
What projections can we make for ADA?
ADA, the Cardano token, is very far from the value it had in the past. This had come close to $ 3 in September 2021, at the time of the previous major blockchain update. Will the price of Cardano, with this update, experience a strong growth as at the time of its first update? This is not obvious because the context is completely different. At the time, bitcoin and many other cryptocurrencies had also reached all-time highs. The news around Cardano and its update had strengthened the rise in the price of its token and installed it in the top 10 cryptocurrencies in a sustainable way, but this sharp increase in price has also accompanied a general increase in the crypto sector. The Vasil update, Cardano’s hard fork, should however have a positive impact on ADA’s price. According to our estimates and those of various experts, at the time of the update and during the following weeks, the price of Cardano could easily approach the price of $ 1 without the need for the cryptocurrency market to explode in parallel.
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