The ADA token is experiencing a period of growth
While the cryptocurrency market was rather struggling, at the end of May 2022 there was some rebound in the value of a large number of cryptocurrencies. For example, Bitcoin, which we were used to seeing with a value close to $28,000 or $29,000, saw an increase of almost 10% in value in one week to reach a price that oscillates between 31,500 and 32,500. $. This uptrend is true for a lot of cryptocurrencies, but it is especially true for Cardano (ADA) which saw an increase of around 25% in value on May 31, 2022.
How to explain the strong growth of the ADA cryptocurrency?
Recently, the leaders of the Cardano blockchain did not make any specific announcement that would explain this 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, be 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, in which they rate the website and its legitimacy.
In this article we are going to talk about some features of Cardano and the upcoming big update which is expected to have a big impact.
Updates on Cardano
Cardano is a blockchain that is used to developing slowly and in the shadows. It is a project which maintains many relations with the academic world, in particular with universities, and which announces few updates. This is a big difference with a lot of projects that very regularly announce updates to adapt to the situation but which sometimes seem to be short-term repairs. These updates can be useful to overcome certain problems but do not necessarily allow their blockchain to develop in a sustainable way. In the case of Cardano, it is quite the opposite, the objective of each update is to lay new foundations for the future.
In September 2021, Cardano launched a big update that had implemented the first smart contracts on the blockchain. This was an extremely important step for Cardano, which had started to develop 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. Certainly, but it should be noted that there were almost three times fewer smart contracts on 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 bear fruit and the blockchain is entering a new dynamic.
Since the big update in September 2021, Cardano has only launched a few smaller updates. A new big update, which should be on the same scale 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 significant change for Cardano that will allow its ecosystem to grow much faster. The Vasil update, hard fork will allow a lot of new decentralized applications (DApps) to develop 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 over the past two months. He added that today there are not so many projects installed in 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 testnet but will come to light on the mainnet soon. This could concern a very large number of protocols.
Don’t take the Cardano 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 the price of Cardano?
The development of a much more powerful DeFi ecosystem on the Cardano blockchain should make investors who believe in this project happy. This development will attract a lot of interest and attention to Cardano and the many protocols will need ADA tokens to operate which will have a positive impact on its price. The token will be used more for paying commissions, staking and many other things. The more the utility of the Cardano blockchain grows, the greater the demand will be for the Cardano token.
What projections can we make for ADA?
ADA, the Cardano token, is very far from the value it has 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 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 reinforced the rise in the price of its token and had installed it in the top 10 cryptocurrencies in a sustainable way, but this sharp rise in the price also accompanied an overall rise in the sector. crypto. The Vasil update, hard fork of Cardano should, however, have a positive impact on the price of ADA. 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 quietly approach the price of $1 without the need for the cryptocurrency market to explode. in parallel.
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