Cardano: Here’s how ADA is doing after a bearish Q2 behind it
Cardano [ADA]‘s community has been waiting for the Vasil upgrade for the last few months. Well more so in the anticipation that it would help the native token, ADA, reach new heights. Has that been the case before? No, not really. But, looks like this narrative is taking a turn to a better side.
Feels like a lifetime
Cardano’s long-awaited Vasil upgrade, which aims to improve the network’s scalability and performance, has “successfully” gone through the testnet. It is expected to deploy on the mainnet in a month. Also, this development would bring different attributes to the table.
According to the CTO of dcspark, it was previously impossible to port a lot of ERC20 tokens on the network because of the missing functionality of the blockchain. But this would change with the Vasil update. Cardano would allow users to utilize and develop a new class of tokens: noncustodials, stablecoins, and stateful tokens.
Moreover, just hours after the testnet launch, Cardalonia, a metaverse on the Cardano blockchain, also announced its smooth launch, adding that the hard fork is now “inevitable.”
— Cardalonia (@cardalonia) July 4, 2022
Needless to say, these developments in June end/July start indeed helped the network and the token to register some gains. Considering the price front, ADA witnessed a 5% surge as the token traded around the $0.45 mark. Meanwhile, the development activity on the network also showcased an unprecedented uptick. Here’s a tweet to support this scenario.
June On-chain #Cardano Stats ??
Did someone say Cardano was the top project by development activity in the last 30 days? ? ?@santimentfeed
Let's take a look at what developer activity is and why it matters.
— Cardano Community (@Cardano) July 4, 2022
The development activity can be used to gauge a project’s commitment towards creating a working product, and continuously polishing and upgrading its features. In addition to this, the volume metric too reciprocated the same enthusiasm as depicted in the plot below.
This just shows that investors/traders have flocked back to the network after seeing important upgrades. According to the on-chain data, the number of transactions on the blockchain, which had been declining throughout June, noted an uptick of 33.3% by the end of the month.
Big relief bounce
Different analysts have reiterated positive scenarios regarding the network. A pseudonymous trader known as Pentoshi believed that some wild volatility could be in play for Cardano (ADA). This means that after a strong and lengthy downtrend, Cardano [ADA] is likely in for a big relief bounce.
$ADA Update ?
Eventually this will have some pretty wild mean reversion
— Pentoshi Powell Jr ?? (@Pentosh1) July 2, 2022
The question that remains is if the token could sustain this rise and surpass the $1 mark.