Cardano: Latest planned update could foster ADA rise – on one condition
- Cardano is set to implement a new update in February to enhance the network.
- ADA, despite its recent uptrend, remains undervalued per the MVRV Z score.
Tim Harrison, the vice president of Cardano [ADA], dropped hints about an upcoming major release via a tweet on 19 January. The release would impact Cardano’s cryptographic primitives and make it easier to implement cross-chain initiatives.
— Tim Harrison (@timbharrison) January 19, 2023
Read Cardano’s [ADA] Price Prediction 2023-24
This would be accomplished by integrating widespread digital signature norms into the Plutus smart contract platform. As per the official release, the upgrade would further help with interoperability and pave the way for the building of decentralized cross-chain apps.
Moreover, the upgrade was stipulated to go live on test networks on 11 February. The main networks would further receive an update on 14 February. From then on, Plutus’ smart contract developers would have access to a wider variety of multi- and threshold signature designs, allowing for the maximum level of protection.
Smart Contracts and TVL in numbers
The number of smart contracts executed on the Plutus script daily rose to over 4,800 until press time, according to data from Cardano blockchain insight. Furthermore, The Total Value Locked (TVL) on the network was about $69 million as of this writing, according to data from DefiLlama.
However, the TVL clearly went downhill. Regardless, if further dApps and smart contracts are launched due to the planned update, it might be a game-changer for Cardano blockchain.
Cardano token still remains undervalued
Notwithstanding the positive updates, Cardano remained undervalued with the press time movement, according to Santiment. ADA scored -1.05 as of this writing based on the Market Value to Realized Value (MVRV) Z score. This showed that ADA might be profitable for its investors if purchased at the press time price.
However, the 30-day MVRV of ADA revealed that investors were holding the asset at a higher value during that time. At the time of writing, the MVRV measure was over 12%.
ADA’s price move flattens…
The daily timeframe chart of ADA revealed that it was under sell pressure despite being on an uptrend. It was trading at about $0.30 as of the time of this writing, and price movement was flat.
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However, the Relative Strength Index (RSI) indicated that ADA was still in a bull trend despite the present flat price movement. The RSI line was above 60, showing a reasonably strong bull trend. Bullish sentiment was also evident in the Moving Average Convergence Divergence (MACD), which was above zero.
Increased adoption of dApps could have a favorable effect on ADA as its utility grows. It is still undetermined, though, how it will all ultimately unfold.