Cardano – Chang hard fork’s hype fuels ADA’s price, but is there more to come?

The Chang hard fork is set to go live on the mainnet next week, barring any setbacks
Cardano already cleared the first Chang threshold regarding SPO readiness paving the way for the fork’s activation

As an analyst with over a decade of experience in the crypto space, I am eagerly anticipating the imminent Chang hard fork on Cardano. Given my extensive background in this field, I have witnessed firsthand the transformative impact that such events can have on a blockchain network’s performance and overall growth.

The Cardano system is preparing for a significant event called the Chang hard fork, designed to enhance the network’s scalability and governance structure, as well as boost its overall performance. Notably, the team behind the Chang hard fork has suggested some tentative dates for when this upgrade will be rolled out.

In a tweet, the educational resource dedicated to Cardano, Intersect, announced a tentative mainnet production date of August 27th for Chang. The final decision regarding the hard fork will be made known beforehand on August 23rd (Friday).

Additionally, the technical team suggested that September 3rd could serve as an alternate optimal timeframe for the hard fork, should the current proposals prove unworkable.

Chang hard fork update

Chang plans to boost governance and scalability on Cardano by adopting the Cardano Improvement Proposal (CIP) 1694. This initiative gives ADA owners a stronger voice in deciding Cardano’s future advancements and upgrades. On the technical front, this hard fork aims to significantly increase the network’s processing capacity and overall performance.

To initiate the initial phase of Chang hard fork, it is essential that approximately 70% (or higher) of the network nodes upgrade to version 9.1.0, and at least 80% of the exchange platforms should be ready to handle transactions and operations. Last week, Cardano achieved the first requirement by reaching node readiness.

As an analyst, I’ve observed that readiness metrics for exchanges have been progressively improving, yet liquidity remains somewhat behind, with it currently at 34.8% as reported by Cardanoscan data. At this moment, 21 exchanges have achieved ‘Ready’ status to support the Chang hard fork, while 19 others, including Binance, are still in the process of reaching that point.

Currently, 17 trading platforms, among them Bybit with a 5.42% market share in terms of liquidity, have not made any advancements.

ADA/USDT technical analysis

The imminent Chang hard fork may provide a significant lift for Cardano (ADA), given its recent drop from the list of top 10 cryptocurrencies by market capitalization.

Earlier this week, Tron (TRX) displaced Cardano (ADA), making it the second occasion in the past five months that ADA has been surpassed. The first instance was back in May when Toncoin (TON) took the lead.

As a crypto investor, I’ve noticed a renewed sense of optimism surrounding the network, with the upcoming implementation by Chang serving as a catalyst. For example, this week, the market intelligence platform Santiment reported that Cardano has experienced the most positive sentiment so far this year, despite its price challenges.

Cardano – Chang hard fork’s hype fuels ADA’s price, but is there more to come?

The announcement about when the Chang hard fork will occur has given Cardano (ADA) a slight increase in value, as seen in the trading activity of the midweek markets as well.

Cardano (ADA), at press time, was trading at $0.353, following a 6.82% uptick in the last 5 days.

Cardano – Chang hard fork’s hype fuels ADA’s price, but is there more to come?

According to the 4-hour chart analysis, the Moving Average Convergence Divergence (MACD) signal suggests a growing bullish trend. Specifically, on August 19, the MACD line crossed over the Signal line, implying that the momentum is increasingly favoring the buyers.

2024-08-22 10:47

Chang hard fork update

ADA/USDT technical analysis

Read More