Cardano Dips by 6.2% As Vasil Hard Fork Activation Countdown Begins

Key Insights:

• Forty-eight hours ago, Cardano’s developers submitted the updated proposal for the Vasil hard fork.
• This hard fork is expected to be the biggest and most significant upgrade to date.
• ADA surprisingly continued treading downwards with a 6.22% decline.

The third-generation cryptocurrency and blockchain, Cardano promised a slew of capabilities and functionalities at the time of its launch, which it has been slowly building towards.

The most important of these capabilities was the introduction of smart contracts, aka Decentralized Finance.

Cardano and DeFi

After a three-year-long wait, Cardano underwent the Alonzo hard fork and received the DeFi functionality. However, it failed to garner the response that was expected out of it, and the blockchain did not see the DeFi boom.

For that reason, the Vasil upgrade was proposed, which on paper is said to bring significant performance and capability upgrades to the blockchain.

Calling it the biggest and the most important upgrade to the blockchain yet, Cardano developers Input Output (IOHK) finally submitted the updated proposal to hard fork the Cardano Testnet on June 28 after delaying it by a month.

The proposal will be implemented by July 3 post which the testnet will receive similar functions as the mainnet would. However, the upgrade on the Cardano mainnet will only be deployed after four weeks from July 3.

The reason behind this, as explained by IOHK, was,

“The community has requested a minimum period of 4 weeks to allow SPOs, devs & exchanges the time they need to test and upgrade before hard forking the #Cardano mainnet. Once everyone is comfortable & ready, we’ll go through the same process to upgrade the mainnet to #Vasil. (sic)”

By significantly improving the script performance and efficiency, the Vasil hard fork will ensure lower costs and provide higher throughput through diffusion pipelining for a better developer experience.

While the announcement of the submission of the proposal came on June 28, 2 days ago, the response from the investors hasn’t been exactly bullish.

ADA Did Not Reciprocate

Unlike the Alonzo hard fork, which took place back in September last year when ADA ended up rallying to form a new all-time high, this time around, the altcoin is heading downwards instead of going up.

After having already lost almost 30% during the crash this month, ADA noted another 11.28% decline over the week, with 5.07% added to the downfall in the last 24 hours.

Investors who were expecting bullishness out of this upgrade would not only be disappointed but might even end up exiting the network if the performance does not improve by the end of July when the Vasil hard fork is scheduled to be implemented on the Cardano mainnet.