Cardano began the week with a robust performance, registering a 2% increase over the past 24 hours to trade at $0.3725 as of July 8.

This price growth allowed ADA to recover all the losses it incurred on Sunday, July 7, indicating a shift in investor sentiment toward the layer-1 token.

Broader Cryptocurrency Market Context

This surge in ADA’s value stands out against the backdrop of a bearish trend in the broader cryptocurrency market. In contrast to Cardano’s rise, Bitcoin and Ether, the two largest cryptocurrencies by market capitalization, experienced declines of approximately 1.89% and 0.79%, respectively.

One of the key factors contributing to ADA’s recent gains is the latest update from Charles Hoskinson, the founder of Cardano, regarding the progress of the project and the upcoming Chang hard fork.

Cardano is preparing for the Chang Hard Fork, set to occur by the end of July.It's worth noting that before its previous hard fork in 2021, $ADA surged 130%, from $1.35 to $3.10 in just a month. pic.twitter.com/E8zTEgZM6k

— IntoTheBlock (@intotheblock) July 6, 2024

During an Ask Me Anything (AMA) session on July 7, Hoskinson provided insights into the ongoing efforts and milestones within the Cardano ecosystem, highlighting that the Chang hard fork is nearly complete.

Hoskinson reflected on the numerous challenges and achievements the Cardano ecosystem has faced over the past few years. He acknowledged that it has been a long and arduous journey, with the ecosystem encountering several obstacles, particularly in governance.

Despite these hurdles, the Cardano community has persevered and made significant progress.

Completion of CIP 1694

A notable achievement highlighted by Hoskinson is the completion of all elements of CIP 1694, a critical component that took approximately two years to finalize. This accomplishment is essential for the overall architecture of Cardano and signifies a major milestone in its development.

Central to Hoskinson’s update was the announcement that node 9.0, a crucial element for the Chang hard fork, is nearly complete. This development is exciting for the Cardano community as the Chang hard fork represents a significant upgrade for the ecosystem.

According to Hoskinson, this hard fork is expected to initiate the transition to the Voltaire era, marking the final stage of Cardano’s roadmap to create a fully decentralized blockchain ecosystem. This transition has been in the works for two years.

The anticipation of the Chang hard fork has raised expectations for a potential significant rally in ADA’s price.

Historical data supports this optimism; according to IntoTheBlock, ADA experienced a substantial price increase of 130% in the run-up to its last major upgrade in 2021, climbing from $1.35 to $3.10 within a month.

This historical performance suggests that the upcoming hard fork could similarly catalyze a significant price rally for ADA, which is reflected in the current price action.

Growth of the Cardano Network

In addition to the positive sentiment surrounding the Chang hard fork, ADA’s upside potential is further supported by the recent growth of the Cardano network.

Data from IntoTheBlock reveals that the number of active addresses on the Cardano blockchain has increased from 21,560 on June 17 to 36,700 currently. Similarly, the number of new addresses has risen from 6,110 wallets to 10,420 over the same period.

Further data from IntoTheBlock indicates an increase in addresses holding 10 million to 100 million ADA, rising from 356 addresses in early February to approximately 400 at present.

Source: CoinShares

This increase suggests that large holders are increasing their buying activity in 2024, demonstrating confidence in the long-term potential of ADA’s price.

This growing confidence is also evident in the net capital flows across crypto asset funds. According to CoinShares’ weekly report, Cardano funds received $100 million during the week ending July 5, bringing the year-to-date inflows to $9 million.

This significant inflow of capital highlights the growing interest and investment in Cardano, further supporting its positive price trajectory.

Overall, the combination of the upcoming Chang hard fork, historical performance trends, and the expanding Cardano network has created a bullish outlook for ADA.

These factors contribute to the positive investor sentiment and the recent price gains, positioning Cardano for potential further growth in the near future.

The post Why is Cardano (ADA) Outperforming the Market Today? appeared first on Coinfomania.