Cardano (ADA) Grows 20% In One Week, Will It Hit $1 Amid ‘Vasil’ Launch?
07 June 2022 - 9:00PM
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Considering the launch of the most anticipated hard fork on the
Cardano blockchain, dubbed ‘Vasil,’ investors expect more growth
for the crypto project in near future. Consequently, traders’
actions over the tentative launch of the most significant upgrade
of the project pumped ADA’s value more than other top-ranked
digital assets’ gains. The upcoming upgrade will take place
on June 29, 2022. And it will possibly impact the adoption of the
Cardano network more than its previous hard forks. Related Reading
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Recently Per the trading stats of June 6, ADA has left behind major
cryptocurrencies as investors see potential in the latest upgrade.
As that aims to enhance blockchain capabilities to execute smart
contracts. An example of it is yesterday’s upsurge 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 the price many times whenever hard forks happened in
the past. An example of it is the Alonzo upgrade which skyrocketed
ADA’s price by more than 200%, launched in September 2021.
Likewise, Mary hard fork launched in March 2021 saw a massive gain
of up to 1,600% in the ADA’s price. What Trapped ADA’s Bulls?
The previous hard forks occurred in an expansionary
macro-environment with the price rallies driving huge profits.
During that time, Federal Reserve was buying government bonds for
$120 billion each month. But unfortunately, after considering the
continuous higher inflation, the U.S. central bank has now turned
aggressive. As a result, analysts have been now pointing out there
is less U.S dollar liquidity to purchase highly volatile assets,
including cryptocurrencies and stocks. Like the entire crypto
market, Cardano also lost its momentum due to the Fed’s tightening
policies and high rates. As a result, ADA is nearly down 80% from
its ATH of $3.16 recorded in September 2021. These facts dropped
the ADA’s price significantly. Will The Vasil Upgrade Lift ADA At
$1? To guess the possible price movements over the event, we must
first consider what Cardano Improvement Proposals (CIPs) include.
The upgrade adds four CIPs, including CIP-40 (Collateral Outputs),
CIP-33 (Reference Scripts), CIP-32 (Inline Datums), and CIP-31
(Reference Inputs). The CIP-31 is mainly expected to reduce the
transaction costs on the Cardano blockchain. Related Reading |
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Net Inflows Per statements of Cardano’s development team on the
first week of May, “reference scripts reduce your transaction
costs. Currently, new scripts need to be included in each
transaction. With reference scripts, you can interact with the
script through a reference, pushing it onto the chain. Interaction
with a smart contract becomes minimal.” In line with a poll run by
leading crypto tracker Coinmarketcap, the price estimate tool shows
that 24,468 believe ADA price could touch the $1.06 level ending
this month. And 15,940 voters predicted $0.972 as the peak price of
ADA in ending July. Featured image from Pixabay and chart from
TradingView.com
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