Cardano Prepares For Update, Will It Be Enough To Push Bears Back?

The Cardano network is preparing for its upcoming Hard Fork Combinator (HFC) event “Vasil”. Although the cryptocurrency has undergone several optimizations and updates, it still follows market sentiment.

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Cardano price (ADA) has actually been trending downwards since it was below $2 at the close of 2021. It has continued this trend as bigger cryptocurrencies retest crucial support levels.

At the time of writing, ADA’s price trades at $0.80 with a 5% loss in the last 24-hours and a 6% loss in the past 7-days. Although the market cap of cryptocurrency is falling after it was ranked amongst the top 5, there are some indicators that suggest potential bullishness.

Cardano ADA ADAUSDT
ADA Trends to the Downside on the 4-hour Chart Source: ADAUSDT Tradeview

Per a post from Cardano developer Input Output Global (IOG), they are focused on preparing the network’s node and consensus for the upcoming HFC “Vasil”. Expected in June 2022, this update will upgrade the mainnet “performance properties”.

“Vasil” is mainly aimed at making Cardano more efficient when processing decentralized applications (dApps) transactions. The network’s smart contract users will have a better experience.

The network introduced its smart contract capabilities back in 2021 with a series of Hard Fork Combinator events (HFC) which ended with the “Alonzo” upgrade. The Cardano ecosystem has experienced significant growth since then.

Despite the growth, ADA’s trading volume has been moving to the downside along with its price. Since below, the metric has struggled to get back to prior highs. It reached an all time high of May 2021.

Conversely, ADA’s transaction volume has been on the rise and recently hit a multi-year high. This suggests that while retail investors might not be as active on Cardano, whales are potentially buying the dip as the “Vasil” upgrade approaches with the potential to increase the ecosystem’s use cases and efficiency.

Cardano ADA ADAUSDT Chart 2
Source: Token Terminal

Cardano Facilitates Entry Into Its Ecosystem

IOG is a Cardano developer and recently launched Essential Cardano. This initiative was designed to help users explore the ADA-based ecosystem.

Deployed in its beta phase, the initiative will be supported by a “rich” directory of “sharable” content that aims at showcasing the best of the Cardano ecosystem. Cardano community members will have the ability to access blogs, videos and other relevant information.

Related Reading: Cardano ADA Real Volume Shows That the Downtrend is Not Over| Cardano (ADA) Real Volume Suggests Downtrend Is Far From Over

IOG previously stated that the community is an important component of the network. They are providing users with more tools to have a voice in Cardano’s future. IOG has added these words to its Beta Phase Launch of this Initiative:

This is why we want to work together and share our ideas early. The platform can still be improved on with the community’s input. Beta may have some bugs. This is your chance to help get it off to the best possible start & grow it together.

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