Cardano (ADA) Grows 20% In One Week, Will It Hit $1 Amid ‘Vasil’ Launch?
Considering the launch of the most anticipated hard fork on the Cardano blockchain, dubbed ‘Vasil,’ investors expect more growth for the crypto project in near future. Consequently, traders’ actions over the tentative launch of the most significant upgrade of the project pumped ADA’s value more than other top-ranked digital assets’ gains.
The upcoming upgrade will take place on June 29, 2022. And it will possibly impact the adoption of the Cardano network more than its previous hard forks.
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Per the trading stats of June 6, ADA has left behind major cryptocurrencies as investors see potential in the latest upgrade. As that aims to enhance blockchain capabilities to execute smart contracts.
An example of it is yesterday’s upsurge of 14%, reaching its value of $0.64. On the other hand, its biggest competitor Ethereum was able to gain 6% at the same time.
Notably, Cardano, a proof-of-stack blockchain platform, has already experienced large increases in the price many times whenever hard forks happened in the past. An example of it is the Alonzo upgrade which skyrocketed ADA’s price by more than 200%, launched in September 2021.
Likewise, Mary hard fork launched in March 2021 saw a massive gain of up to 1,600% in the ADA’s price.
ADA’s price currently fluctuates around $0.60. | Source: ADA/USD price chart from TradingView.com
What Trapped ADA’s Bulls?
The previous hard forks occurred in an expansionary macro-environment with the price rallies driving huge profits. During that time, Federal Reserve was buying government bonds for $120 billion each month.
But unfortunately, after considering the continuous higher inflation, the U.S. central bank has now turned aggressive. As a result, analysts have been now pointing out there is less U.S dollar liquidity to purchase highly volatile assets, including cryptocurrencies and stocks.
Like the entire crypto market, Cardano also lost its momentum due to the Fed’s tightening policies and high rates. As a result, ADA is nearly down 80% from its ATH of $3.16 recorded in September 2021. These facts dropped the ADA’s price significantly.
Will The Vasil Upgrade Lift ADA At $1?
To guess the possible price movements over the event, we must first consider what Cardano Improvement Proposals (CIPs) include. The upgrade adds four CIPs, including CIP-40 (Collateral Outputs), CIP-33 (Reference Scripts), CIP-32 (Inline Datums), and CIP-31 (Reference Inputs). The CIP-31 is mainly expected to reduce the transaction costs on the Cardano blockchain.
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Per statements of Cardano’s development team on the first week of May, “reference scripts reduce your transaction costs. Currently, new scripts need to be included in each transaction. With reference scripts, you can interact with the script through a reference, pushing it onto the chain. Interaction with a smart contract becomes minimal.”
In line with a poll run by leading crypto tracker Coinmarketcap, the price estimate tool shows that 24,468 believe ADA price could touch the $1.06 level ending this month. And 15,940 voters predicted $0.972 as the peak price of ADA in ending July.
Featured image from Pixabay and chart from TradingView.com