Cardano (ADA) is back above the $0.50 range, thanks to the sudden spike in Bitcoin (BTC) prices during last Friday and Monday’s trading. This came amid the sluggish network activity of the altcoin. However, this may soon change as it is about to introduce a slew of upgrades.
Slump in Sentiment Toward Cardano
According to AMB Crypto, sentiment toward Cardano has been stale as of late. Even the token’s positive recovery over the past few days has failed to jumpstart its sluggish behavior in the market.
At present, the Daily Active Addresses on the network dived by over 20,000 in the last couple of days from 57,000 to 37,000. This was coupled with a slump in transaction activity by 14,000 from 79,000 to 65,000.
The source fears that the continuity of this trend may eventually take a toll on the health of the Cardano ecosystem in the future.
Network Upgrades Coming Soon
For now, it appears ADA is simply riding on the coattails of BTC similar to other altcoins. So, without anything significant going on its network, it could head into an unsustainable path.
Thankfully, two major events are expected to concurrently take place within Cardano, namely the Chang hardfork and the Plutus V3. Both are primed to enhance the network’s decentralized applications (dApps) and interoperability. The latter is the most promising in terms of getting back sentiment in Cardano from users and developers because of its significant contribution to the advancement of the network’s infrastructure.
Based on the notes of Cardano Spot, the Chang hardfork is set to commence at the end of Q1 or early Q2 this year. Its primary goal is to advance the decentralized governance of the network through stakeholder participation. It will be a catalyst for the Voltaire era, which is considered to be a crucial piece in the network’s roadmap to self-sustainability.
Meanwhile, Plutus V3 is poised to boost Cardano’s smart contract capabilities, development, and interoperability. Cardano founder Charles Hoskinson refers to it as a “massive upgrade” for the network.
Cardano (ADA) Now
As of this writing at 8:45 AM UTC, Cardano’s token is slightly down by 1% to $0.55 following a retracement from its peak of $0.56 in the 24-hour chart. Trading volume also dipped by a double-digit at 16% as $424.52 million worth of ADA moved between wallets and exchanges.
Cardano’s present valuation is still 82% away from its $3.10 all-time high (ATH) in September 2021, but an emerging pattern may be the key to its bullish resurgence past those numbers. According to analysts, the current trajectory of ADA is mirroring its path between 2018 and 2020 before it shot up to an ATH. This time though, they strongly believe that the top may arrive at $7.