Cardano To Increase Block Size By 10%, Can ADA Benefit From This Network Improvement?
26 Aprile 2022 - 12:00AM
NEWSBTC
Via an official post, Cardano developer Input Output Global (IOG)
confirmed the approval and implementation of a proposal to increase
the network’s block size. Currently standing at 80 kilobytes (KB),
the mainnet will see a 10% increase to 88 KB. Related Reading
| Cardano (ADA) Is One Of The Worst Performing Crypto In Terms
Of Profit Set to roll out today April 25 at 20:20 UTC, at the
boundary of epoch 335, as confirmed by the company. IOG called this
proposal a “significant network enhancement” set to increase
Cardano’s throughput and the performance of its decentralized
applications (dApp). As the company reiterated, Cardano has been
experiencing a series of network upgrades that will allow it to
improve its scaling capabilities in 2022. As the block size
increase, IOG added, they will keep a close eye on it for future
changes: Once deployed, we shall monitor network performance and
behaviour closely over at least one epoch (5 days) to determine the
next increment. Cardano has seen phenomenal growth in recent
months, with performance improvements to match. Furthermore, the
company claims that Cardano has been experiencing a “huge recent
rise in transaction volume”. In that sense, with the addition of
more improvements, they expect this trend to continue. IOG is
focused on optimizing Cardano as it prepares for its next Hard Fork
Combinator (HFC) event set for around June this year. IOG added:
Cardano is one of the most decentralized blockchains in the world,
built for correctness and security. As the ecosystem grows, we’re
focused on delivering the scaling phase of our roadmap; improving
speed and network capacity while maintaining security and
decentralization. As NewsBTC reported, the network seems to be
experiencing an increase in institutional demand, per data from
IntoTheBlock. On-chain transaction volume for ADA appears to be in
an uptrend since the start of February. This data seems to match
with IOG’s statements about Cardano’s growth. @Cardano is
experiencing increasing institutional demand The volume of on-chain
transactions >$100k has increased by 50x just in 2022 Yesterday,
a total of 69.09b $ADA were moved in these large transactions,
representing 99% of the total on-chain
volumehttps://t.co/8ME8STvRSF pic.twitter.com/aqH7hYIPiV —
IntoTheBlock (@intotheblock) March 29, 2022 What’s Wrong With
Cardano (ADA)? Data from Token Terminal paints a different picture.
As seen below, ADA’s trading volume saw a massive increase in late
2021 as the cryptocurrency began a persistent downside price
action. This suggests investors started taking profit on ADA at
that time. Since that period, the cryptocurrency saw an uptick in
trading volume during January which led to further losses for ADA.
Only the increase in trading volume for March and April has led to
profits for this cryptocurrency. Remains to be seen if the network
improvements, as IOG claims, will be effective at bringing more
users into the Cardano ecosystem which could result in sustainable
price recovery. Related Reading | New Wallets Surge On
Cardano, What’s Behind This? CEO at IOG Charles Hoskinson addressed
ADA’s recent price action. In response to a holder’s concerns about
the cryptocurrency’s recent downtrend, and what are the possible
factor behind it, Hoskinson said: Nothing. Markets move up and
down. Cardano is stronger and more useful as an ecosystem than it’s
ever been. At the time of writing, ADA’s price trades at $0.8 with
a 2% loss on the 4-hour chart.
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