Cardano’s ADA Navigates 90% Drop Amid Chang Hard Fork Evolution

• The cryptocurrency Cardano (ADA) has been experiencing a significant downtrend, trading nearly 90% below its all-time high from September 2021.
• Recent developments showcase that over 74% of blocks are now created on a Chang-ready node version, an essential milestone for Cardano’s network update.
• Cardano’s latest upgrade, known as the Chang hard fork, aims to usher in a new era of decentralized governance for the blockchain platform.

Discover how Cardano’s Chang hard fork is set to transform its decentralized governance model and the impact on ADA’s market dynamics.

The Chang Upgrade: Phases and Potential

The Chang hard fork represents Cardano’s push towards enhanced decentralized governance. Announced to be executed in two distinct phases, Chang #1 and Chang #2, each phase integrates specific governance elements. Last month, Cardano kick-started the first phase, laying down the fundamental groundwork for decentralization, involving substantial community participation and network updates.

Stake Pool Operators and Exchange Liquidity

The initial phase of the upgrade required significant technical readiness from the ecosystem. Specifically, it necessitated upgrading 70% of stake pool operators (SPOs) and achieving 85% exchange liquidity on the mainnet candidate. Recent data indicates that Cardano has surpassed the critical SPO threshold, with 74.02% of blocks being minted by nodes running the v9.1.0 release.

However, the transition of exchange liquidity has been slower, with only 20.16% readiness at the time of reporting. Exchanges such as WhiteBIT, Bitfinex, and BitMart have upgraded to support the hard fork, while sixteen additional platforms are currently adapting their systems for post-upgrade operations.

Network Activity and User Engagement

Beyond the technical upgrades, Cardano’s network continues to exhibit stable activity levels. Blockchain analytics firm Santiment recently reported Cardano ranking third in development activity for the 30 days ending on August 5th. Despite the high development rate, user engagement metrics reveal a plateau in growth. The number of addresses holding ADA has held steady at 4.45 million for more than a year.

Transaction volumes remain robust, with Cardano settling approximately $7.2 billion daily in on-chain volume. This activity translates into a Network Value to Transactions (NVT) ratio of 2.62, suggesting that ADA is undervalued when considering its network usage.

ADA Price Dynamics

The ADA token has faced a bearish market trend, experiencing a downturn from $0.82 in mid-March to $0.39 by June’s end. Recent weeks have seen further declines, with the price slipping below key support levels previously established at $0.32. As of the latest update, ADA is trading at $0.34, beneath its 100-and 200-day simple moving averages (SMA).

Conclusion

The Chang hard fork is a pivotal moment for Cardano, aimed at reinforcing decentralized governance within its network. While the technological advancements are noteworthy, they have yet to catalyze a significant price movement for ADA. Nevertheless, sustained development activity and a low NVT ratio hint at underlying network strengths. Market participants will continue to monitor these developments closely, looking for cues on ADA’s future price trajectory and overall market position.