By
Chimamanda U. Martha
April 25th, 2024
Despite the capital inflow and growth in adoption, there has been no upward movement in the price of ADA.
An increase in capital inflow into the Cardano ecosystem suggests that the Cardano community is bracing for the Vasil hard fork. Input Output CEO, Charles Hoskinson, tweeted that the updated proposal to the Cardano chain has been successfully submitted. Consequently, the hard fork will now take place on September 22.
Hoskinson noted that there was no going back. “We all going to sit back and watch the Vasil rocket take off. It’s in the air right now,” he said.
Named after the late Bulgarian Mathematician and ADA community member Vasil Dabov, the hard fork will improve the scalability of the Cardano chain. Notably, there will be improvements to Plutus V2 scripts and a commensurate improvement in Cardano’s smart contracts.
Already, the platform has over 3000 smart contracts and more than 7,000 NFT projects with 15 marketplaces. With the improvement, Developers can now design more powerful and efficient blockchain-based apps. Although the hard fork will go live on September 22, some technical improvements will not kick in until September 27.
No Reflection in Market Value
Despite the capital inflow and growth in adoption, there has been no upward movement in the price of ADA. Instead, the coin has continued a downward spiral.
Crypto trading expert, Michaël van de Poppe, believes that there could be a potential rally after the upgrade despite the current coin price. While noting similarities to the Ethereum Merge, Poppe believes there is a huge chance to build momentum after the upgrade event. “A run towards $1 isn’t unexpected around this event,” Poppe noted.
He also noted that the market direction makes the Vasil hard fork different from that of the Merge. At the time of writing, the coin was trading at $0.43, according to CoinMarketCap.
Differentiating the Vasil Hard Fork from the Merge
With the cryptocurrency market gearing for a bullish trend, a rally of Cardano will be because of a fundamental shift rather than the downward market movement. Poppe believes the Buy the rumor, sell the news strategy helped the Ethereum price rally.
Regarding Cardano, he said:
“The standard ‘buy the rumor, sell the news’ concept might not be the case here. “
Meanwhile, Mr. Hoskinson advised the ADA community to upgrade their wallets to Daedalus 5.0.0 to enjoy the new technical fixes.