- Cardano (ADA) has been battered by is currently recording mild recoveries.
- Riding on series of products and upgrades it has recorded, a retest of the $0.35 level appears imminent.
It looks like the price of Cardano (ADA) may be hinting at a possible breakout with the recent surge in its on-chain metrics, a surge in its Decentralized Finance (DeFi) and a positive technical outlook.
In June, ADA faced a massive drawback when it got listed among other tokens like Solana (SOL), Polygon (MATIC) and Binance Coin (BNB) as unregistered securities in the lawsuit which the United States Securities and Exchange Commission (SEC) levied against Binance and Coinbase. Following the designation, the protocol established the fact that it holds a differing perspective regarding the categorization of its native token as a security under the jurisdiction of U.S. law.
At the time the SEC made the tag, ADA’s price lost up to 42.5% of its value, slumping from $0.37 to a two-year low of $0.21 in just one day. Its woes at the time were compounded when some trading platforms like Robinhood, Revolut, and eToro delisted the token, leading to further selling pressure.
Despite these selloffs, recent data have shown that ADA is making tremendous progress with an uptick in DeFi activity after a scalability upgrade in May.
This upgrade is a unique effort to address some community concerns as Cardano had previously been criticized for delaying network upgrades and other developments. Charles Hoskinson, the founder of the protocol cited “betting on the wrong technology and being a bit ambitious with the roadmap“ as the reason for the delays. He also added that a significant percentage of the initial road map has already been accomplished.
These upsides and resilient measures might be the seed that, when fully germinated, might help take ADA back to the $0.35 price level.
Cardano (ADA) Introduces More Updates; Hydra And Hydra Pay
It seems Cardano may have overcome the upgrade delay bottleneck as there was a recent implementation of the long-awaited scalability upgrade Hydra.
The Layer-2 scaling solution for the blockchain network was launched in May. Hydra is designed to boost the Cardano network throughput and scalability to about one million Transactions Per Second (TPS). It supports micropayments, voting, insurance contracts, and many other applications which involve either instant confirmation or lower fees.
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Remarkably, the total fees paid on Cardano surged to a one-year high after the Hydra upgrade. It was however short-lived as the lawsuits made it relapse. But recently, there has been a consistent upward trend on the Cardano blockchain as the total ADA deposited in DeFi applications on Cardano surged. It has gone as far as two times its peak value during the bull market of 2021, based on data from DefiLlama.
Another upcoming upgrade that developers have been working on is a new decentralized payment system dubbed Cardano Hydra Pay. This initiative is powered by the Cardano-based layer-2 solution Hydra Head and is compatible with the Web 3.0 wallets in the network. According to popular ADA Whale, Hydra Pay is a near-instant settlement L2 poised to revolutionize Web3 micropayments as it plans to offer cheap and faster settlements. Markedly, the Cardano Hydra Pay was tested on Android way back in May.
The positive sentiments brought on by these products and services are poised to help drive the demand for ADA and as such, push it to new highs.