Cardano is one of the largest cryptocurrencies as it currently ranks as the 5th largest cryptocurrency by market valuation of $13.97 billion.
Just like Bitcoin and Ether, the investors had very high hopes for the digital asset. They hoped that as Cardano recovers, its price would rise significantly.
However, just like other cryptocurrencies, Cardano has not been able to perform well. Although the developers hoped the upgrade to their network would bring in huge success, it did not do as planned.
Now, the entire Cardano community is confused and wants to know exactly what may happen to the digital asset. Let us go through what Cardano had anticipated with its upgrade and how things may turn out to be.
Just like the rest of the cryptocurrencies, Cardano also rose in demand and value in the year 2021. As its demand grew, the Cardano developers were glad they would be able to beat several major cryptocurrencies.
It soon found its way to the exchanges for trading crypto and became a major rival to Ether. In the year 2021, the adoption level for Ether skyrocketed but its network did not offer very high scalability.
Apart from scalability, Ether also found itself charging too much fees for the transactions followed by transaction delays.
It was at that time when Ether announced that it was working on its Eth 2.0 (the Merge) to deal with the situation. Ether developers announced that they had to work on the upgrade so they could fix the issues.
Cardano found it to be the best opportunity to overtake the market and announced the development of Vasil, naming it the ETH killer.
Outcome of the Vasil Upgrade
Finally, after a long time, Cardano was able to implement the Vasil upgrade on September 22. As the upgrade was implemented, it offered all that the developers had claimed during its development.
The network offered high scalability, low fees, fast transactions, and so much more. Although the upgrade offered what it had promised but it did not make much of a difference in value.
While the majority of the cryptocurrency investors are confused, a multiple reasons could have led to the upgrade’s failure.
One of the major reasons why Cardano (ADA) failed to bring in much traction with its Vasil upgrade is due to the macroeconomic turmoil.
Due to the economic downtrend, the majority of the cryptocurrency investors have stopped interacting with cryptocurrencies entirely.
This is because they see no benefit investing in cryptocurrencies due to the low values of the cryptocurrencies. The valuation of the entire cryptocurrency has also fallen three times from the all-time high.
As the investors are not getting into cryptocurrencies, Cardano’s Vasil has been rendered useless until the industry makes a comeback.
Ethereum’s Merge did not Attract Much Crowd
It is a common trend that the investors always look up to a cryptocurrency that is bigger than the one they want to invest in.
Ethereum was also to implement its Merge on September 15, and it had promised to offer so much to the investors. However, Merge did failed to bring in much traction and ETH’s price was hardly moved.
As the investors did not find much success with ETH’s Merge, they perceived the same for Vasil, and that is exactly how things turned out.
Future of Cardano
At the moment, Cardano is facing a similar situation like the rest of the cryptocurrencies. The overall cryptocurrency market is still facing a downtrend but things may change in near future.
If the cryptocurrency industry ends up recovering, then the situation for Cardano would change as well. That may be the time when Vasil’s true potential would be realized and Cardano’s price would rise significantly.