After a delay of three months, Cardano’s founder has announced an official date for the launch of the Vasil mainnet upgrade.

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Bitcoin and Crypto Market Watch Monday, September 05, 2022 - 18:08

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After a delay of three months, Charles Hoskinson, Cardano’s founder, announced an official date for the launch of the Vasil mainnet upgrade. The upgrade is now scheduled to happen on September 22. The Vasil upgrade is the fifth in line for the layer-1 scaling solution. What will the upcoming upgrade entail for Cardano? Let’s find out but before that, we will discuss what changes will occur under the upgrade. 

The changes to happen under the Vasil Mainnet upgrade include upgrades in its programming language which would result in improved scalability accompanied by lower transaction costs.

Cardano is moving ahead

Cardano has taken multiple steps ahead toward the implementation of its Vasil upgrade. Here are a few noteworthy ones from its latest weekly development report:

  • The network has completed a total of 49.1 million transactions.
  • 75% of the mainnet blocks have already been created by the final Vasil nodes.
  • Top Cardano apps, in terms of their TVL, have upgraded to the latest version v.1.35.3.
  • ADA has also become the first network after Ethereum to roll out a DeFi ecosystem without any VC funds backing it.

Impact of the upgrade on ADA prices

The hype around the upcoming upgrade has started to yield results, with Cardano one of the few top tokens displaying gains despite the current slump in the market. Its double-digit weekly gains present a promising picture. At press time, Cardano was trading at $0.48, down by 2.46% during the last 25 hours and up by 11.8% in the past seven days.

<source: Ambcrypto>

The recent uptrend in Cardano’s MVRV chart (market-value-to-realized-value) presents a good investment opportunity for traders. Till the end of August, ADA’s MVRV ratio was declining till mid-August. But for the first time, ADA trading has become profitable again, the MVRV ratio showing a resurgence of late.

<source: santiment>

Data from Santiment shows that the price increase has caused major spurts in ADA trading volumes. In the last 24 hours, the trading volumes have shot up by 76%. This number is however short of its average performance in June.

<source: tradingview>

On the technical analysis front, ADA presents a rising upward trend. It flipped its ascending trendline into resistance two days back and has managed to remain above the trendline so far. Cardano must retest its August high before it can fully mark a comeback. However, previously, Cardano has witnessed major price spurts ahead of its upgrades if we look at its price history.  The jump in its RSI to 51 can be called a positive signal. However,  it still needs to move above its 50-day and 100-day SMA.

The next few days will be crucial for Cardano to establish momentum. Investors are advised to wait before they enter or exit the market. In the long-term, Cardano’s improved scalability and low costs will prove a major price booster, being one of the strongest contenders in the layer-1 scaling solutions race.

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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.

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