Cardano: Vasil Incoming! What It Means For ADA!

As ethereum’s transition to Proof-of-stake approaches crypto traders And investors are turning to ethereum Competitors to protect their portfolios In case the market’s high expectations Are not met In recent weeks cardano’s ada has Emerged as an ideal hedge against Something going wrong with the merge and Cardano’s own upcoming upgrade could Supercharge ada’s price action So today i’m going to give you a quick Breakdown of cardano bring you up to Speed on some of the project’s most Important updates and tell you where ada Could be headed in the near term Before we analyze this ethereum killer i Need to give you a little bit of filler I am not a financial advisor education And entertainment are my only pillars so Please contact a financial advisor if Your portfolio looks like a thriller Also note that i hold ada as part of my Portfolio but i won’t be a schiller now If this is the first time we see eye to Eye my name is guy and crypto is how i Get by My mission is to create crypto content With only one quality setting hi If this is something you can get behind Subscribing to the channel and pinging That notification bell is what i Prescribe That’s all you need to know about this

Guy let’s see why ada is about to fly If you’re unfamiliar with cardano here’s What you need to know Cardano was founded by ethereum Co-founder charles hoskinson in 2015. it Was built by input output hong kong or Iohk and imergo both of which are based In singapore but have offices and Subsidiaries around the world Cardano’s ongoing development is Coordinated by the cardano foundation a Swiss non-profit which is also the legal Owner of the cardano brand the more you Know Cardano raised nearly 80 million dollars Across various icos in 2015 2016 and 2017. Publicly available information suggests The entities behind cardano have not Raised any additional funding since that Time The cardano mainnet went live in 2017 And though the project is still very Much in development compared to its Peers most of its key features and Functionalities have already been Implemented Under the hood the cardano blockchain Uses a novel proof-of-stake consensus Mechanism called oroborus which allows It to process around 500 transactions Per second Note that this tps figure does not apply To smart contract transactions which can

Be as slow as just a few transactions Per second depending on network demand That said cardano’s smart contract tps Should increase significantly after the Vassal hard fork which i’ll come back to Later don’t you worry Now although the cardano blockchain Currently isn’t all that fast it is one Of the most secure and decentralized Blockchains and that’s because it has Roughly 3200 staking pools The secret source to cardano’s Decentralization is its novel k Parameter which decreases staking Rewards when too much ada is being Staked in a single pool This incentivizes stake pool operators To create additional staking pools which Further decentralizes the cardano Blockchain If that didn’t make it clear enough ada Is used for staking on cardano it’s also Used to pay for transaction fees and to Participate in community governance via Project catalyst Note though that any cardano native Asset can be used to pay for transaction Fees thanks to cardano’s novel babel Fees mechanism Adas taking rewards are currently around 4.6 per year according to the official Cardano calculator there is no minimum Stake no lockup or unlock period or any Slashing risks associated with staking

Ada it should come as no surprise then That around 70 of all ada in circulation Is being staked Now in contrast to most cryptocurrencies Ada had a fairly equitable initial Distribution with only around 15 percent Of its initial supply of roughly 26 Billion being allocated to the three Entities behind cardano Like bitcoin’s btc cardano’s ada has a Maximum supply and in ada’s case this Supply is 45 billion Again like btc it’s going to take quite A bit of time for ada to hit its maximum Supply with some estimates suggesting it Could take another 30 years if not more The cardano blockchain currently has 73 Decentralized applications according to Cardano crowd 12 of these are d5 protocols which Collectively hold around 90 million Dollars in total value locks according To defile armor Note that there are over 1 000 projects Building on cardano as of june this year Cardano’s expanding ecosystem can be Accessed using various browser extension Wallets the most popular being the nami Wallet which has seen over 200 000 Downloads on chrome based browsers Note that there are over 3.5 million Unique cardano wallet addresses in total Now if you want to learn more about Cardano’s ecosystem you can check out

Our video about the top cardano projects Using the link in the description Now it’s only been about four months Since i last covered cardano but a lot Has happened since then In may ada was one of the fastest to Recover after the crypto market crash Resulting from terror’s collapse this Might have something to do with the fact That it was not nearly as exposed to Terra’s ust stablecoin which had found Its way into just about every major d5 Protocol in crypto In early june emirgo and the cardano Foundation released a decentralized Application back end for the cardano Developer community making it easier for Them to build new dapps Iohk also announced that dish network Would be leveraging its atala prism Decentralized id solution for the Television and satellite company’s Loyalty coin program Note that atala prism is the same Decentralized id solution being Leveraged by the ethiopian government For educational credentials Iohk even announced the upcoming release Of its own light wallet dubbed lace Which will act as a one-stop shop for The entire cardano ecosystem this Includes integrated staking governance And even direct access to cardano’s Decentralized applications

At the end of june iohk announced that Cardano’s vassal hard fork would be Delayed by a month due to the discovery Of bugs but noted that the vassal test Net would be coming soon Charles hoskinson also testified in Front of u.s politicians in a hearing About crypto regulations and we actually Summarized that hearing in another video And that will be down in the description In early july the vassal test net went Live resulting in lots of ada Accumulation as investors awaited the Mainnet hard fork that was expected to Occur a few weeks later Unfortunately the vassal mainnet hard Fork was delayed again at the end of July and by this point ada holders were Starting to become apathetic as per the Lack of views on cardano content related To the delay What’s even more unfortunate is that This news seems to have overshadowed an Important update from iohk and that’s That the software company is working on Creating a quote family of side chains For cardano including one that supports Ethereum smart contracts via the Ethereum virtual machine Now this is important because cardano Has had a harder time attracting Developers and liquidity due to its use Of haskell a coding language that is Extremely secure yet not nearly as

Common as solidity or rust and Apparently very difficult to develop Decentralized applications with or so I’ve read As such the release of one or more Ethereum compatible side chains on Cardano could attract lots of developers And liquidity to cardano’s ecosystem all While making cardano more interoperable With ethereum and other evm chains Seriously keep your eyes peeled for this Now in august crypto friendly bank Signum announced that it would be Offering ada staking to its clients Underscoring the institutional interest In cardano Note that signum has over 1 000 Institutional clients Charles also revealed that the vessel Hard fork would likely occur in September and just a few days ago we got Confirmation that vassal will officially Occur on thursday the 22nd of september Roughly one week after the ethereum Merge is expected to be complete As i mentioned earlier the vessel hard Forks should significantly improve Cardano’s smart contract scalability and If this improvement can be felt by users When interacting with cardano’s dapps It’s more than likely that ada will Explode In a good way As a cherry on top robin hood also

Recently listed ada given that robin Hood has 23 million users this could add Lots of fuel to ada’s rocket ship Especially if the wall street bet Subreddit decides it’s time to send ada To the moon However despite all of cardano’s amazing Announcements partnerships and Developments ada is down more than 50 Percent since i last covered the project Back in may and it’s not looking very Pretty on the long-term price chart This is for a few reasons First and foremost cardano is a large Cap altcoin and that means ada’s price Action is highly correlated with btcs Case in point btc’s year-to-date price Action looks almost exactly the same as Ada’s Coin market cap’s historical data also Suggests that ada’s circulating supply Has increased by around 450 million Since may Now if we assume an average price of 50 Cents per ada during that time it Translates to around 175 million dollars Of potential cell pressure Now this isn’t actually all that much Cell pressure for a large cap altcoin And it’s an amount of cell pressure that Should be easy to absorb even in a Crypto bear market Logically then this means that the issue Is on the demand side

Although the number of native assets on Cardano has increased by more than 30 Since may almost every other demand Metric has been moving sideways For starters there’s cardano’s nft Trading volume which fell off a cliff in June according to openc nft a website For tracking cardano nfts Now this is significant because most of The native assets on cardano are Apparently nfts suggesting that most of The 30 percent gain occurred in june What’s more is the number of downloads For the navy wallet browser extension is The same as it was during my last update About the project The number of cardano staking pools also Seems to be the same and has even Declined according to some cardano Blockchain explorers The total value locked in cardano’s defy Applications has also dropped by almost 70 percent while ada’s price only fell By around 40 percent Suggests that the decline in tvl was Caused by ada being removed from d5 Protocols not just the decline in ada’s Price to be fair this discrepancy can be Explained by the greater losses Experienced by the cardano native assets In these d5 protocols but this is Arguably offset by the increase in the Number of d5 protocols What’s harder to explain away however is

That the total number of dapps deployed On cardano has increased by one since May at least according to cardano crowd This could again be because the website Is not up to date but this seems to be The go-to site for cardano dabs so i’m Assuming it probably is up to date Now the scariest demand side statistic i Came across is the number of unique Wallet addresses on cardano which has Only increased by around 250 000 since May according to adestat Note that this is a fraction of how Quickly new cardano wallet addresses Were being created in the past The worst part is that ada doesn’t seem To have a very high baseline level of Demand as cardano’s dapps only have Around 50 000 monthly users in total According to sexplorer.io Now this is nothing compared to the Hundreds of thousands of monthly users Individual dapps on bnb wax solana Ethereum polygon flow ronin eos and Other blockchains continue to see According to dap radar which apparently Doesn’t track cardano dapps Now even with these headwinds ada could Rally as high as a dollar as a result of Ethereum’s merge and cardano’s own Vassal hard fork This would work out to a 2x move in the Short to medium term which is a Realistic expectation especially since

Ada’s price action in fiat and eth terms Supports this target There are additional macro factors Coming later this month that could take Ada and other cryptocurrencies even Higher or much lower and you can check Out my video on coin bureau clips about Those macro factors using the link in The description Now when it comes to ada’s long-term Potential this all depends on cardano’s Upcoming milestones which can be found In the official cardano roadmap updates From cardano’s developers and interviews Amas and updates with charles hoskinson Himself As many of you will know the cardano Roadmap consists of five stages called Eras Cardano is currently in the basho era Which focuses on scaling and it’s not Entirely clear when the basho era will End You would think that it ends with the Vassal hard fork but apparently this is Not the case In a june video detailing the history of Cardano the narrator explains that 2023 And 2024 will focus on scaling which Suggests basho will not end until Sometime in 2024 Note that this is much later than the End of 2022 estimate that was given by Cardano developers last december

I’ll also quickly note that another Highly anticipated cardano scaling Solution called hydra is expected to be Complete sometime next year and you can Learn more about hydra by watching our Previous cardano update using the link In the description Now as for voltaire cardano has Technically entered this era as well and Charles mentioned in a june video about Cardano’s roadmap and governance that Project catalyst will soon be linked More closely to the cardano blockchain In preparation for protocol level Governance of cardano itself The details about the first stages of Cardano’s protocol governance should be Announced by the end of this month and If i understand correctly the primary Focus will be the establishment of a So-called members and merit-based Organization which will table proposals With ada holders as the voters Charles mentioned in another june video That cardano is currently focused on Making things quote open source in the Context of governance meaning that the Ada community will play a more active Role in the direction of the project Obviously cardano’s code is already open Source In a july ama charles revealed that There’s a chance cardano will partner With algorand after iohk interim

Director of architecture john woods left The company to join the algorand Foundation as chief technology officer Funnily enough charles also seemed to Imply that cardano is not open to Partnering with solano and made an Amusing tongue-in-cheek joke about Solana’s constant outages i’ll leave a Link to that ama in the description so You can hear it for yourself Now in a more recent video about the Vassal hard fork charles said that the 22nd of september will be quote just Another day and said that he’s happy Cardano has remained committed to the Quality and security of its transactions Oddly enough he didn’t say much about The scalability improvements vassal will Bring And this echoes something one of Cardano’s core developers said during a Mid-month developer update in june Specifically that quote the effects of The vassal hard fork will not be instant He also made it sound like it will be up To the dap developers to implement the Scalability improvements of vassal This brings me to the potential concerns I have about cardano and my first is of Course the upcoming vassal hard fork This is simply because i and many other Ada holders have ptsd from what happened After the last highly anticipated Cardano hard fork last september that

Introduced smart contracts In short what happened was that Expectations were extremely high Everyone was expecting there to be Dozens if not hundreds of dapps Deploying on cardano Instead concurrency challenges delayed The rollout of cardano’s dapps and Continue to cause user experience issues To this day All the ada holders who decided to Huddle through the autumn 2021 dip were Probably disappointed when cardano dapps Started to deploy earlier this year Notably sunday swap which went live in January Now as someone who dabbles with cardano Dapps i can tell you that the user Experience is not up to standard This is why there is so much riding on The vassal hard fork Many ada holders including myself are Hoping literally praying that it will Fix or at least improve the user Experience on cardano’s dabs this puts Us in the same position that we were Before last september’s hard fork and That is disconcerting This might actually be why the cardano Team has been wary of promising too much With vassal They don’t want the community to be as Hyped up as it was with the alonzo hard Fork especially since vassal is the most

Significant hard fork for cardano to Date meaning there could be technical Issues This ties into my second potential Concern and that’s regulation now maybe It’s just me but the cardano team seems To have been hyper focused on governance Over the last few months This could just be the team moving their Focus from scalability to governance but The regulatory climate suggests Otherwise If you’ve watched any of our recent Videos about the sec you’ll know it Believes that basically every Cryptocurrency besides bitcoin’s btc is A security like a stock in a company and Must therefore be regulated aka Destroyed and this regulatory scrutiny Even seems to apply to ethereum’s eth Now polkadot founder gavin wood who’s Also an ethereum co-founder seems to Have been the first to realize that the Sec was coming and has been hyper Focused on decentralizing polkadot ever Since I suspect cardano is in a similar Situation hence the sudden acceleration In governance development The difference is that charles hoskinson Has chosen to go on the offensive by Flying to washington dc to meet with Politicians head on and convince them to Pass crypto regulations that will

Benefit not just cardano but all Cryptocurrencies The question is whether charles and Other crypto lobbyists can convince Lawmakers before a crackdown occurs and I’m honestly not so sure Now the sec has a habit of handing out Enforcement actions at the end of its Fiscal year which is this month and you Can bet that there are many crypto Projects on its hit list This doesn’t mean that ada is on that List but as a large crypto project it’s Definitely within the line of fire And recall that etoro delisted ada for U.s users late last year citing Unspecified regulatory concerns While it’s true that they may have just Been trigger-happy one can only assume They consulted their legal advisors This means that cardano will have to Move quickly to decentralize its Governance as much as possible and i Reckon this is important to do Regardless of the regulatory Implications Luckily decentralization is something Cardano does best In sum then it’s going to be a very Interesting september for ada If the vassal hard fork manages to meet Or even exceed the expectations of ada Holders we could see it outperform every Other large cap cryptocurrency by

Percentage terms and then some If vassal fails to meet the expectations Of adaholdus however they or rather we Could be waiting for another year or two Before the scalability improvements We’re waiting for come around Now i for one am happy to huddle my ada But i’d really rather not see it Continue to crash so let’s hope vassal Is a success And that is all for today’s cardano Update if you enjoyed it let me know by Smashing that like button If you want to make sure you don’t miss The next crypto update subscribe to the Channel and ping that notification bell While you wait for my next flick to hit The tube you can check out coin bureau Eclipse for more quality crypto content And behind the scenes bits You can also tune into the coin bureau Podcast if you’re looking to get crypto Knowledge that will last if you’re Addicted to social media you can follow Me on twitter tiktok and instagram and If you’re having a hard time keeping up With the crypto market join my telegram If you want to know what other cryptos i Hold as part of my portfolio my weekly Newsletter is where you need to go i Also give you my exclusive take on how i Think the crypto market will ebb and Flow If you want to support the channel head

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