Those of you who have been into crypto investing for a while now are probably familiar with what a “fork” is, but in case you don’t, it’s when the community of owners for a particular crypto make a decision to change something about how the blockchain functions. After the change, the blockchain splits, and the new fork continues forward separately from the original.
The important thing for investors is that because forks often occur to incorporate new tech or security features into existing cryptos, they almost always raise the value of the token, so anyone with a position in that crypto before the fork occurs can potentially be in for a nice ride.
Now the creators of Cardano (ADA) are taking the network to the next level in an attempt to become the next Bitcoin (BTC) or Ether (ETH). The Cardano community believes the “Vasil” hard fork – an upgrade that will go live at the end of June – will be a major catalyst for attracting more users to the protocol.
Vasil seeks to deliver several important improvements to the Cardano network, all aiming to increase efficiency and lower transaction fees.
Increased efficiency and lower fees mean more users, and more users means higher prices.
Let me walk you through what’s going on and why you need to get in on ADA now to take advantage of the upcoming blast-off…
Cardano: Leaner, Meaner, Greener, and More Capable
One of the most important updates – “diffusion pipelining” should improve the network’s scalability. Previously, Cardano block extension required six ordered steps, which is a secure but unproductive way of propagating transactions through the network.
Diffusion pipelining will streamline that block propagation process. The system will merge several steps of the process so that they can run jointly, and decrease the time that nodes need to report information with each other. More efficient block propagation will also create the possibility for larger blocks and reduce Cardano fees even more.
Prior to these updates going live there’s was a noticeable uptick in the number of users joining Cardano, which has had a very slow start when compared other blockchains in the space
Data from the Cardano Fans Stake Pool group indicates that about 60,000 users have created Cardano wallets since May 1st. The network has averaged about 1,500 new wallets per day, and ADA is up 20% against ETH in the last month. NFTs are also becoming really popular on Cardano and more than 5 million of them have been minted on the protocol.
ADA Owners Are Going to Have a Great Summer
Cardano is on track to become one of the world’s most universal and dependable smart contract platforms. The Vasil upgrade should help the platform become even more user-friendly as fees decline and dApps rise to a new level of functionality.
And, at the risk of sounding like a broken record… more users mean a more valuable crypto.
Now, what does that mean for investors? Well, fortunately, it’s a lot more straightforward than “diffusion pipelining.”
See, Cardano hit $3 last year during an upgrade cycle, so I think we’re probably looking at hefty price increases from today’s $0.60 level. I think ADA will easily hit $1. Unlike last year’s run higher, I think this coin is much more fairly priced now; you’re seeing a real intrinsic value argument. In the near term, this coin should probably be around $1.50.
There’s no better time to buy ADA, and anyone who does is going to enjoy a lovely ride.
— Nick Black
Source: Money Morning