What are the prospects for Cardano after the first network upgrade in 2022?

Cardano is in a correction, but fundamentals are improving.

  • Cardano is in a correction as the broader crypto market cools off following the end-of-February rally.
  • Cardano's core fundamentals are improving as three upgrades are planned to make Cardano more suitable for Dapps.
  • One of the most recent upgrades resulted in a 12% price increase.

Cardano (ADA) is one of the most valuable platform blockchains in terms of market capitalization. Cardano's core metrics are stronger than many of its competitors, despite being a work in progress for the last couple of years.

Cardano's security is one of its distinguishing features. Cardano's Ouroboros Proof-of-Stake algorithm is the first to be proven to be secure. This is an important metric because, with most financial applications moving to blockchain, it could be disastrous if they run on unsafe blockchains. It's one of the reasons Ethereum, despite its obvious cost and scalability issues, continues to dominate the DeFi market.

While Cardano has yet to gain widespread adoption, things are looking up. Cardano is getting a slew of big projects, including a Metaverse project. Furthermore, the Cardano team has announced a number of significant updates that could help propel Cardano forward in 2022.

Cardano technical updates could result in a price increase.

The IOHK had planned three major updates for 2022, all of which have already been implemented. One of the changes it has made is the addition of light wallets and a Dapp store. The goal is to make Cardano run more efficiently now that smart contracts have been introduced.

Following the announcement, ADA increased by more than 12%. It's a sign that as more updates are released, investors expect the Cardano blockchain to run even more efficiently. Some of the upcoming updates include the addition of side chains for even better scaling and a synchronization solution.

cardano daily views
Cardano(ADA)/USDT; Source: Tradingview

Cardano is currently trading in a bearish channel, despite low volumes. Cardano has broken through the 100-day moving average at $0.9271 in the last 24 hours, and the selloff is accelerating.

If Cardano breaks through $0.90, prices as low as $0.85 may become a reality in the near future. If there is a reversal and Cardano breaks through the 50-day moving average at $0.9495, it could be a good signal for prices to rise above $1 in the near term.

Summary

Cardano is currently working on three major upgrades that are expected to make it more appealing to Dapp developers. Cardano, like the rest of the market, is currently in a minor correction following a rally in late February.

** Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of USA GAG nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

Follow us on Google News

Filed under

Recent Search