- Cardano network’s capacity would increase to 80KB with update from developers at Input Output Hong Kong.
- Massive demand from whales creates a demand wall for Cardano, this could prevent the altcoin’s price from dropping.
- The changes are scheduled to go live on February 4, boosting Cardano’s throughput.
- Analysts believe if Cardano price trend remains same as last two days, the altcoin could hit new all-time high in March.
Input Output Hong Kong’s next parameter update for the Cardano network is set to increase the network’s capacity and throughput. This has created a spike in demand for Cardano with a 15,000% increase in whale wallets.
Cardano demand skyrockets with massive demand wall
Developers of the Cardano network, Input Output Hong Kong, are working on a new upgrade for the Ethereum-killer. The upgrade would boost the throughput of transactions on the network and boost capacity.
An 11% increase in capacity and higher memory units per transaction together improve the “real world” performance of Cardano. The upgrade is set to go live on the Cardano mainnet on February 4, 2022.
Investors appear to be bullish on all the solutions that Cardano is implementing to scale the network, which can be seen from an on-chain perspective. Data from blockchain analytics firm Santiment shows that the number of addresses holding 10,000 to 1,000,000 ADA has skyrocketed by a whopping 15,000% since December 2021.
ADA Supply Distribution
The spike in ADA holders combined with massive demand from traders could fuel a bullish impulse for the token's future price. Some of the most renowned traders in the industry, such as Ali Martinez, believe Cardano sits on top of a crucial support wall that might ensure prices do fall below $1.
#Cardano found stable support!@intotheblock's IOMAP shows that 341,500 addresses had previously purchased 7.65 billion $ADA at an average price of $1.
— Ali Martinez (@ali_charts) February 1, 2022
Such a massive demand wall may have the strength to prevent #ADA from dipping lower. pic.twitter.com/htsYt6VaMw
FXStreet analysts have also evaluated Cardano's price trend and noted that the ADA has great upside potential and is preparing for a rebound.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.