The Cardano ADA price has been a market leader this week. Could this be because the Vasil upgrade is upcoming this June?
Like every other popular blockchain, the Cardano development team is looking for new techniques to increase scaling. Ethereum, facing its own well-documented scaling problems, is leaning towards layer two solutions like Optimism and Arbitrum. These protocols can potentially scale Ethereum to tens of thousands of transactions per second, however, they don’t actually improve layer one transaction speeds.
The Vasil upgrade, on the other hand, will speed up Cardano’s base layer. Vasil is going to introduce a new technology called diffusion pipelining, which will increase block size without making major changes to the protocol.
According to Matthias Fitzi, a Cardano researcher, diffusion pipelining, “promises to substantially increase throughput while being achievable by minimally invasive changes to the system, and is thus an excellent candidate for implementation in the short term.”
In other words, the Vasil upgrade can offer short to medium-term relief for the heavy transaction loads that Cardano has been experiencing lately. By expanding the block size the network can increase its maximum transactions per second, without altering the Proof of Stake consensus mechanism.
The upgrade is coming just in time, as Cardano’s popularity is on the rise. There’s now more than $300 million in TLV, total value locked, on the blockchain. That’s enough to make it the 25th largest blockchain by TLV. That figure doesn’t sound so impressive, until you consider that Cardano only got smart contract capabilities a few months ago.
The types of projects that are building on Cardano – IMG Source
In other bullish news, Grayscale has made Cardano the largest holding in its new Smart Contract Platform Ex-Ethereum Fund. The fund, which was just released this week, took a large position in Cardano because of its market cap. As the 7th largest cryptocurrency in the world, Cardano has a larger presence than other smart contract platforms like Algorand and Fantom.
The final bit of good news for Cardano: Coinbase is adding staking support for the ADA token. Coinbase users who have their ADA on the exchange will be able to stake it and earn an estimated 3.7% ROI. Coinbase staking is a big deal since it’s likely to incentivize more investors to buy and hold ADA to capture the yield.
The future’s looking brighter for Cardano, after accusations in 2021 that it was an overvalued “ghost chain”. It will be interesting to see whether the continued growth of the Cardano ecosystem will result in a boom of unique users to rival that of the most popular chains in the space.
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Original Source: https://www.exodus.com/news/vasil-upgrade-bullish-for-cardano/
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