Considering the launch of the most anticipated hard fork on the Cardano blockchain, called ‘Vasil’, investors are expecting more developments for the crypto project in the near future. As a result, traders’ actions on the tentative launch of the project’s most significant upgrade pushed the value of ADA higher than the gains of other top-ranked digital assets.
The next upgrade will take place on June 29, 2022. And this will likely affect the adoption of the Cardano network compared to its previous hard forks.
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According to trading data for June 6, ADA has outperformed the leading cryptocurrency as investors see potential in the latest upgrade. It aims to enhance the blockchain capabilities for executing smart contracts.
An example of this is yesterday ups and downs of 14%, reaching its value of $0.64. On the other hand, its biggest competitor, Ethereum, was able to gain 6% at the same time.
Notably, Cardano, a proof-of-stack blockchain platform, has already experienced large increases in price several times even when hard forks occurred in the past. An example of this is the Alonzo upgrade that increased the price of ADA by over 200%, launched in September 2021.
Similarly, the Mary Hard Fork, which was launched in March 2021, saw a massive increase in the price of ADA by up to 1,600%.
Is ADA’s bull stuck?
The previous hard forks took place in an expansionary macro-environment in which price rallies generated huge profits. During that time, the Federal Reserve was buying $120 billion worth of government bonds each month.
But unfortunately, after considering persistently high inflation, the US central bank has now turned aggressive. As a result, analysts are now pointing out that the US dollar has low liquidity to buy highly volatile assets, including cryptocurrencies and stocks.
Like the entire crypto market, Cardano lost its momentum due to the Fed’s strict policies and high rates. As a result, ADA is down almost 80% from the ATH of $3.16 recorded in September 2021. These facts have caused the price of the ADA to drop significantly.
Will Vassil Upgrade Lift ADA to $1?
In order to anticipate possible price movements during the event, we must first consider what the Cardano Correctional Proposal (CIP) consists of. upgrade connects Four CIPs including CIP-40 (collateral output), CIP-33 (reference scripts), CIP-32 (inline datum), and CIP-31 (reference input) CIP-31 is primarily expected to reduce transaction fees on the Cardano blockchain.
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To Statement Cardano’s development team said in the first week of May, “Context scripts reduce your transaction costs. Currently, new scripts need to be included in each transaction. With context scripts, you can communicate with scripts through a context.” can interact with, push it onto the chain. Interaction with smart contracts is minimized.”
In line with a survey conducted by leading crypto tracker Coinmarketcap, the price estimation tool shows that 24,468 believe that the ADA price may touch the $1.06 level later this month. And 15,940 voters predicted $0.972 as the peak value of the ADA at the end of July.
Featured image from Pixabay and chart from TradingView.com