Cardano [ADA] on-boarding solidity-based apps will have this effect on the network

As the date for the launch of its long-awaited Vasil Hard Fork draws nearer, the software company behind the Cardano Project, Input-Output Global (IOG), yesterday announced the launch of its permission-less Ethereum Virtual Machine (EVM) sidechain alpha on the testnet. According to it, this will allow developers and builders alike to build their Solidity-based applications on the Cardano Blockchain.

In a blogpost published by IOG on 28 April, the software company describing the newly released EVM sidechain alpha stated that:

“This sidechain will allow developers to write Solidity smart contracts on Cardano, create EVM compatible DApps, and ERC20-compatible tokens (and in time, their own sidechains) while gaining many of the benefits of Cardano. That means users will benefit from far lower fees and faster settlement times on a more environmentally sustainable blockchain.

Speaking on its features, it was stated that:

“The key features of the EVM sidechain will be full compatibility with Ethereum upgrades and tools, Web3 wallet compatibility, the use of the proof-of-stake Ouroboros Byzantine Fault Tolerance consensus protocol, and, of course, its ability to inherit security from the Cardano main chain.”

As the rest of the cryptocurrency market undergoes capitulation, has the ADA token found solace in the news of this upgrade?

Nowhere to hide for Ms. ADA

As the bears overrun the entire cryptocurrency market, the ADA token was not able to piggyback on the news of this upgrade to register gains in the last 24 hours. Exchanging hands at $0.4568 per ADA token at the time of press, the token managed to register a 10% decline within the last 24 hours. Although Trading Volume marked a 7% spike, the divergence in price and trading volume hinted at profit-taking in the last 24 hours. 

Source: CoinMarketCap

With price movement marked by a red candle, the Relative Strength Index was positioned below the 50 neutral region at the time of writing. Marking a spot at the 36 index on a downward curve, the bears were spotted pushing this indicator further downwards. Also taking on a downward trend was the Money Flow index (MFI). Although positioned at 52, the bears appeared to be winning the fight with the indicator positioned in a downward curve.

Source: TradingView

A trick up your sleeve?

Yesterday when the upgrade was announced, the ADA token registered a total of 62,721 addresses involved in transacting the token. This represented a 3% decline from the 64,963 addresses recorded a day before. At the time of press, this was pegged at 64,000 at a 2% growth. 

Source: Santiment

Registering a transaction volume of 842.8 million yesterday, the transaction volume quickly tumbled by over 50%. At press time, it was spotted at over 343 million.

Source: Santiment

The last 24 hours was also marked with a drop in whale transactions count as transactions above $100k registered a 56% decline. For transactions over $1 million, a 52% decline was recorded in the transactions count.

Source: Santiment