Why Cardano Is Up 22% Today

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Cardano is focused on doing good and making moves.

Key points

  • Cardano has been focused on the decentralization of the financial sector on a global level in order to put power back into the hands of the individual.
  • Recently, Cardano announced its Vasil hard fork, which will greatly increase efficiency and offer more desirable features.

Cardano has become a fairly well-known name in the crypto-sphere. For those unfamiliar, Cardano is an open-source project with a focus on making positive changes in the world. It aims to do this by redistributing power from the large central structures that lack accountability, over to individuals. Cardano uses its own digital currency, called ADA, which empowers users to join in on the community efforts of the blockchain, even voting on potential software changes.

Today, the cryptocurrency saw a major spike, going from $0.5186 in the early morning all the way up to $0.6773, according to CoinMarketCap. The price has leveled out slightly, sitting at $0.6007 upon writing. What is the reason for these huge gains?

The Cardano Vasil hard fork

One reason could be that there has been an increase of native assets being minted on Cardano, with over 5 million assets having now been minted on Cardano. But the main reason for the jump is the news of the Vasil hard fork. A hard fork is a crypto term that refers to a change to the protocols of a blockchain network. It essentially splits a single cryptocurrency into two, making possible validation of blocks and transactions that were previously invalid. In this case, it would greatly boost the scalability and usability of the Cardano blockchain network, therefore increasing its value.

This particular upgrade is believed to offer large performance improvements and grow Cardano’s smart contract capabilities such as the scalability and usability of the network. Specifically, Vasil is set to include four Cardano Improvement Proposals (CIP) that are designed to reconsider the logic of how Cardano’s Plutus scripts are submitted to the blockchain. Together, the CIP upgrades are intended to lower the transaction fees, improve the network’s throughput and decentralization, and solve the “concurrency” issue that has severely impaired the scalability of the apps on Cardano up until now. The Vasil testnet release is scheduled for June 2, with the mainnet launch slated for June 29.

The bottom line

Overall, this is a company that people want to believe in, as it aims toward the public good and changing the global economy for the better. The Vasil hard fork certainly bodes well, as these types of upgrades historically lead to token prices rising, and we see it today with Cardano. This surge has given Cardano a place in the top 10 cryptocurrencies.

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