Cardano (ADA) is straying from other crypto assets, according to a widely respected financial analyst, as the altcoin’s price rises.
In a new video, the host of the financial education YouTube site InvestAnswers claims that ADA’s current rise is being driven by the planned rollout of the Vasil hard fork later this month.
“It always rallies before hard forks. It’s pretty obvious that the spike right now is due to the Vasil hard fork, which has supposedly a lot of great stuff coming: a lot more scalability in terms of TPS [transactions per second], a lot more smart contract functionality, a lot more DeFi [decentralized finance] capabilities, etc.”
He says network upgrades are historically bullish for ADA.
“If you look back at history, you can see back to the Shelley hard fork in July 2020, Cardano went up 500% and that was, I think, Mary in March 2021, it went up 1,100%. It was a big move up to that hard fork while the most recent Alonzo update saw the DeFi asset rise about 135% and reach an all-time high of $2.96.”
Cardano hit a new high of $0.63 on June 1st, after dropping to a low of $0.42 in May. The altcoin may not have shattered its prior highs, but the price movement implies that ADA is detaching from other digital assets, according to the researcher.
“We’re currently around $0.65, something like that, so it hasn’t been smashed down but it is deviating and becoming uncorrelated from the other assets. If you look at Cardano/Ethereum pair (ADA/ETH), Cardano/Bitcoin pair (ADA/BTC), etc., it is really breaking out, so we’ll watch this very carefully.”
Cardano briefly overtook XRP as the sixth-largest crypto asset by market cap thanks to its recent rise, before resuming its seventh-place position. Cardano is selling for $0.55 at the time of writing, down 12.5 percent in the last 24 hours.
Source: Daily Hodl