Via official post, Cardano developer Input Output Global (IOG) confirmed the approval and implementation of a proposal to increase the network’s block size. The mainnet currently stands at 80 kilobytes, (KB), but will experience a 10% rise to 88 KB.
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As confirmed by IOG, the rollout will take place today, April 25, at 20:20 UTC. This is at the border of epoch 335, according to the company. IOG called this proposal a “significant network enhancement” set to increase Cardano’s throughput and the performance of its decentralized applications (dApp).
Cardano continues to experience network upgrades, which have allowed it to scale up in 2022. IOG said that as the blocks grow, IOG will be closely monitoring it to ensure future developments.
We will monitor the network’s performance over at most one epoch (five days), in order to decide on our next increment. Cardano’s performance has improved to match its phenomenal growth over the past months.
Furthermore, the company claims that Cardano has been experiencing a “huge recent rise in transaction volume”. They expect that this trend will continue with further improvements.
IOG is focusing on optimizing Cardano in preparation for the Hard Fork Combinator event (HFC), which will take place around June. IOG has added:
CardanoOne of the largest decentralized blockchains, it is built to ensure security and correctness. As the ecosystem grows, we’re focused on delivering the scaling phase of our roadmap; improving speed and network capacity while maintaining security and decentralization.
NewsBTC reported that the network is experiencing an increase of institutional demand according to data from IntoTheBlock.
The on-chain volume of ADA transactions appears to have been in an upward trend since February. This data seems to match with IOG’s statements about Cardano’s growth.
@CardanoInstitutional demand is increasing
The volume of on-chain transactions >$100k has increased by 50x just in 2022
Yesterday the total amount was 69.09b $ADA were moved in these large transactions, representing 99% of the total on-chain volumehttps://t.co/8ME8STvRSF pic.twitter.com/aqH7hYIPiV
— IntoTheBlock (@intotheblock) March 29, 2022
What’s Wrong With Cardano (ADA)?
Token Terminal data paints an entirely different picture. As seen below, ADA’s trading volume saw a massive increase in late 2021 as the cryptocurrency began a persistent downside price action.
Investors began to profit from ADA around that time. The cryptocurrency experienced an increase in trading volume between January and December, which resulted in further losses.
Profits for the cryptocurrency have been attributed to only an increase in March and April trading volumes. It remains to be determined if network enhancements, which IOG asserts will bring more Cardano users into the ecosystem, can result in a sustainable price recovery.
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CEO at IOG Charles Hoskinson addressed ADA’s recent price action. In response to a holder’s concerns about the cryptocurrency’s recent downtrend, and what are the possible factor behind it, Hoskinson said:
Nothing. The markets move up and down. Cardano is stronger and more useful as an ecosystem than it’s ever been.
At the time of writing, ADA’s price trades at $0.8 with a 2% loss on the 4-hour chart.
