Cardano [ADA] ‘dumps’ Bitcoin, but how far can investor interest take it
Cardano’s ADA is finally enjoying greater trading activity after a few weeks of dormancy and poor performance. In fact, whales are also finally showing some interest in the cryptocurrency after avoiding it for the past few weeks.
The market’s renewed interest in ADA reflects the growing excitement in the Cardano community, especially with Vasil fast approaching. At the time of writing, ADA was up nearly 10% in 2 days, with the hike coming to the fore after the official date was revealed.
VASIL UPGRADE: DATE CONFIRMED 💪
After successful completion and extensive testing of all core components, plus confirmed community readiness, we have along with @cardanostiftung can today announce September 22 for #Vasil upgrade on #Cardano the main network. 🧵$ADA
1/9— Input Output (@InputOutputHK) 2 September 2022
Cardano soon registered a positive market reaction after the confirmation of the upgrade date. The speed metric recorded its biggest peak a day before the announcement. This was the biggest rise it experienced in the last 30 days.
Source: Sentiment
ADA’s social volume also saw its largest increase in the last 30 days on the day of confirmation of the official upgrade date. As expected, this attracted a lot of attention, especially from whales.
ADA whale transaction numbers also registered a notable increase in the last 2 days. A confirmation of renewed whale interest, especially now that the upgrade date has been confirmed. That means the whales are buying the news and such a development could underline more potential upside in the days leading up to the Vasil hard fork.
Source: Sentiment
Are the bulls here to stay?
This is a question that lingers in the minds of many ADA investors. The cryptocurrency’s press time price level appeared to be far from the previous record high of 2021. This new upgrade will come about a year after the Alonzo upgrade that introduced smart contracts. However, the price action started to crash after last year’s upgrade, contrary to expectations.
Can we expect a similar result this time? Well, the previous upgrade happened when ADA’s price was near its all-time high. The upcoming upgrade will find ADA near the bottom range and at an 83% discount compared to a year ago.
Conclusion
Renewed investor interest means ADA could see more upside in the days leading up to September 22. It is still unclear whether the upgrade will provide more upside, especially since there are many other factors involved.
However, investors should note the positive benefits that the upgrade will bring to the Cardano ecosystem. More importantly, the impact of these benefits on ADA’s long-term demand and growth.
