Since October this year, the price of ADA has recovered off its lows of $0.33. While the price pump has excited many ADA investors, there has not been widespread media coverage as to why ADA’s price has been pumping. We therefore give our readers the lowdown on what is happening with ADA and give an update on what is up ahead that could continue to buoy the price of ADA higher in the coming days.
Completion of Important Vasil Hard Fork
For the uninitiated, ADA has just completed its Vasil hard fork upgrade on 22 September successfully, which was the final phase of the Basho upgrade. Vasil is an upgrade that will scale the Cardano blockchain. It has brought higher network capacity, lower transaction fees, and faster transactions to the already cheap and fast network, making it even more user friendly.
According to Messari, it currently costs an average price of $0.16 to send a transaction over the ADA blockchain, one of the lowest in the industry. Vasil is expected to make that even cheaper.
Cardano has been dogged by problems that have hindered the capacity of dApps to scale. According to the foundation, there are currently more than 1,000 dApps running on Cardano, which is causing some scalability issues. Vasil is expected to bring numerous upgrades to network capacity that will ensure the network will be able to support even more dApps without any functional problems.
Lastly, Vasil will help optimize transaction throughput and increase the concurrency of the Cardano blockchain which can cause transaction speeds to improve from its current 20 seconds.
ADA has two more stages of its roadmap to complete in order to fulfill its founder, Charles Hoskinson’s dream of his ideal blockchain network, these are the Basho and Voltaire upgrades. The completion of the Vasil hard fork has effectively completed the Basho upgrade, leaving only the Voltaire upgrade, which will introduce governance standards to Cardano, as the final step to the full completion of the network.
The Vasil implementation has been considered by developers at Input Output Global (IOG) to be the most extensive upgrade attempted to Cardano to date, which touched every layer of the network stack. Hence, ahead of the Vasil hard fork, worried investors sold their ADA in case some mishap happened, which was why ADA’s price weakened considerably in September. Now that the hard fork has been successfully completed, investors are buying back ADA again.
Crypto Experts Bullish On ADA
According to crypto experts, the Vasil upgrade takes ADA closer to achieving the trilemma of security, decentralization, and scalability, which is a definite positive to the blockchain. With the completion of the Vasil hard fork, several crypto analysts have upgraded their price targets for ADA. One such analyst, Dan Gambardello, even predicts a $500 billion market cap for ADA in the next bull market as the final phases of its roadmap are tied up and the decentralized application ecosystem matures. This would translate into a price of $15 per ADA, for a 3,000% gain in price.
Upcoming Global Cardano Summit in November
While the next bull market could still be some time away, ADA investors may not have to wait long to see its price move higher, as ADA still has some near-term catalysts that could send its price moving higher, albeit not to $15 per coin as yet.
Between the 19 to 21 September this year, Cardano will be holding its annual Global Cardano Summit. This summit could see the global ADA community gather together and hold events to promote Cardano as a blockchain. Cardano Founder Charles Hoskinson also has a habit of revealing new positive developments like partnerships, milestone achievements, etc and giving encouraging speeches to the Cardano community during the summit. A lot of developers and projects building on Cardano will also be speaking at this summit, which could make it a major PR event that could send the price of ADA soaring higher.
Historically, the price of ADA has always pumped in the lead up to this annual summit and this time may not be any different, as the ADA community is one of the most influential and pro-active communities within the crypto space. Last year, in the month leading up to the summit, the price of ADA rose by almost 100%, although its price retreated shortly after the summit together with the rest of the crypto market.
This year, the price of ADA rose strongly beginning on 21 October, slightly more than one month ahead of the summit. With three weeks more to the summit, could we see a similar pattern play out? If history is a guide, there is a chance that some hype surrounding ADA could come in the following days and send its price soaring higher as we approach the start date of the summit. The more adventurous traders could consider buying ahead and taking profit before the summit ends should such an opportunity arise.
The above is the personal opinion of the author and is not to be taken as the official view of Margex. It is also not financial advice and should not be construed as a solicitation to trade. Readers are advised to do your own research and assess your financial situation before doing any investment and trading as they carry risks. When in doubt, please speak with your personal financial advisor.