ADA is struggling to buck bearish trend as Vasil update nears
Cardano reached its current all-time high on September 2, 2021, 10 days before the Alonzo update, which went live on September 12 of the same year. Notably, Cardano grew by hundreds of percent in the months before the Alonzo upgrade, bringing smart contract capabilities to the blockchain. This eventually resulted in the setting of an all-time high on September 2 of last year.
Now the situation is reversed for the impending Vasil upgrade, which is set for Sept. 22 and is only three days away. While most people would have predicted a similar price movement for ADA as was observed for the Alonzo update, this is currently far from the case.
ADA is struggling to cope with a bearish trend even as the Cardano network is on the verge of implementing the Vasil upgrade.
Given the unfavorable market environment since the year’s beginning, ADA has underperformed in 2022. At the time of publication, ADA was trading down 7.55% in the last 24 hours at $0.445. At current prices, ADA remains down 85.79% from all-time highs set ahead of the Alonzo hard fork.
What drives the ADA price?
According to Messari, Cardano (ADA) seemed to be “priced more aggressively” than the blockchain’s adoption metrics prior to the much-anticipated Vassil upgrade, which is expected to bring significant technological improvements.
Speaking on the under performance of the ADA price, Cardano founder Charles Hoskinson stated that markets were “disconnected” from reality. Hoskinson claimed that Cardano “has never been stronger,” while stating that its best days are still ahead.
The Cardano founder also pointed to the fact that the current market action against the ADA price is largely driven by macro factors.
Despite the price’s underperformance, Cardano has seen a whopping fivefold increase in the number of projects building, while more than 3,000 Plutus scripts (smart contracts) had been added to the Cardano blockchain since the Alonzo upgrade.
