Prior to Cardano Chang hard fork, the price of ADA fluctuated between gains and losses.
Due to traders’ caution ahead of the blockchain’s initial hard fork in two years, Cardano’s (ADA) value dropped today.
Cardano will have onchain governance because to the Chang hard fork
Over the last 48 hours, there has been oscillation in the price of ADA. On August 30, it dropped 1.5% to $0.35, erasing nearly all of the gains made the day before.
This standoff among bulls and bears is a reflection of traders’ apprehension over how Cardano’s Chang hard fork would affect the ADA markets.
On September 1, the upgrade to the network will go live, enabling users .can take part in onchain governance—a function that is now accessible on all of Cardano’s major competitors.such as Solana SOL $138 and Ethereum ETH $2,526.
Nevertheless, ADA holders will have the ability to choose Delegate Representatives (dReps) to cast votes on future technological enhancements and suggestions for the Ada blockchain, which should presumably strengthen the network and raise interest in the currency.
ADA, in particular, has underperformed its blockchain competitors and the overall cryptocurrency market in 2024. In comparison, Solana has gained 26.75% and Ethereum has gained 6.75% over the same period, while the Cardano coin has decreased by 45% year to far.
Declining wedge shape drives down the cost of ADA
The multi-month falling wedge pattern that includes Cardano’s intraday losses is defined by two descending, convergent trend lines and diminishing volumes.
ADA retested the upper trendline of the wedge earlier in August, and it has since fallen 15%, including the 1.5% dip that it experienced today. The cryptocurrency may continue to decline as demonstrated below, reaching the pinnacle point of the wedge at about $0.26.
But when the value goes above the higher trendline and climbs as far as the longest distance among the top and bottom trendlines, falling wedges usually produce bullish reversal trends.
Based on the breakout point, ADA’s upside goal by October would be in the $0.47–0.65 area if the same technical logic were applied to its falling wedge.
Cardano (ADA) drops out of the top 10 cryptocurrencies but Tron rises
As user numbers rise on other blockchains, ADA drops out of the top 10 list of cryptocurrencies.
After falling by about 3% over the past seven days, Cardano no longer ranks among the top 10 digital currencies by market capitalization, according to CoinMarketCap.
Cardano (ADA), which held the third position during the 2021 bull market, now ranks eleventh, trailing behind Tron (TRX) at $0.1575. Cardano’s market cap stands at $11.89 billion, compared to Tron’s $12.04 billion.
Cardano has dropped out of the top 10 rankings before. In May, Toncoin overtook ADA following a 30% two-week increase in TON.
This comes during a market-wide correction, with most cryptocurrencies falling below key support levels. Bitcoin (BTC), the largest cryptocurrency by market cap at $59,241, led the decline, losing 11% over the past 24 days and 2.5% over the past 30 days.
ADA’s position drop can be attributed to several factors, including investor sentiment, market trends, and overall market conditions.
Data from Alternative.me shows that the Crypto Fear & Greed Index remains at 28, within the “Fear” zone. Although this is a slight improvement over the “Extreme Fear” of the previous week, it indicates that traders are still hesitant to take risks.
Research from DefiLlama reveals that some have labeled the ADA Blockchain a “ghost network” due to its low activity. Cardano has only 23,807 active addresses, compared to 350,000 for Ethereum and 1.9 million for Tron. With $178.07 million locked on the network, Cardano ranks 29th out of 29 coins, holding less than 1% of the decentralized finance market share, behind Ether, SOL, and Tron
Stablecoin market share is led by Tron network, despite increasing monthly transfer volume
Tron has emerged as the second-largest blockchain after Ethereum in terms of stablecoin market share. According to data from Coin Metrics Network, stablecoin supply on Tron stands at $61.1 billion, representing 37.9% of the stablecoin market, which is currently valued at $161.1 billion. This marks a significant increase from its supply of $46.6 billion a year ago.
Ethereum leads the stablecoin market with $89.7 billion, or 55.7% of the total supply, while Tron follows closely behind.
The increase in Tron’s stablecoin circulation aligns with the growth in transfer amounts, which rose by 5.1% over the past 30 days and 158% year-to-date, surpassing $58.75 billion. Other chains, like Ethereum and BNB Chain, saw their transfer volumes grow by 103% and 46.5% year-to-date, respectively. In contrast, Solana’s stablecoin transfer volumes dropped by 75% during the same period.
Tron’s dominance is further evidenced by its average daily net stablecoin transfer value, which reached $17.4 billion on August 15, far exceeding Solana’s $6.4 billion and BNB Chain’s $1.6 billion on the same day.
Additionally, Tron saw $17.4 billion in stablecoin transfers on August 15, marking a 222% increase from the $5.4 billion transferred on the same day in 2023.
Tron’s total value locked (TVL) hit $10.55 billion on March 14, 2024, its highest level ever, driven by a rise in decentralized finance (DeFi) activity alongside stablecoin volumes, according to DefiLlama. Since August 5, TVL has grown by 12%, now sitting at $7.617 billion.
Over the past year, Tron’s on-chain revenues also experienced notable growth. Daily revenue on the Tron network increased by 27%, reaching $1.5 million on August 16.
The daily spending on Tron-based decentralized apps skyrocketed from $4.61 million to $35.57 million during the same period, marking a more than 672% increase.
Tron’s native token, TRX, saw its value rise by over 80% in the last 12 months, currently trading at $0.133 as of this writing. However, TRX is down 55% from its all-time high of $0.30 in January 2018.
Binance will help with the network upgrading for Cardano
The Chang hard fork, which will usher in the Voltaire period of decentralized network governance, is poised to happen on the Cardano network.
After failing to make the necessary preparations for the previous deadline of August 27, Binance has declared .that it is prepared to support the planned Cardano (ADA) network update and Chang hard fork on September 1.
In order to avoid technical problems during the hard fork on September 1. Binance has decided to halt coin withdrawals and deposits on the blockchain, the exchange announced in a blog post.
For its users, Binance will take care of all technical needs, including making sure ADA is compatible with the new fork. After the upgrade is finished and the network is deemed stable.the platform for trading will once again allow currency withdrawals and deposits on the Cardano network.
In order to enable its network upgrade and hard fork and to guarantee the optimal user experience. Binance will stop accepting deposits and withdrawals of tokens on the Cardano (ADA) network starting at roughly 2024-09-01 20:45 (UTC).
Upgrade postponed by under a week
Charles Hoskinson, the founder of Cardano, stated on August 23 that the Chang hard fork would now take place on September .1 instead of August 23 because he felt that several cryptocurrency trading sites, like Binance, needed more time to organize themselves.
Hoskinson claims that the Chang hard fork will merge ideas of a constitutional republic with liquid democracy.allowing powerful institutions to approve and ratify policies like roadmaps and budgets.
The Chang hard fork is a significant improvement for the Ada ecosystem, and according to Hoskinsion, it will start the Voltaire era, which is the last phase of its roadmap to build a completely decentralized blockchain environment.
Prepared for the Chang hard fork is the Cardano Ada blockchain
The goal of the Chang hard fork is to give Cardano completely decentralized governance as a first step. According to Cardano’s roadmap, it ushers in the “Age of Voltaire,” a time of profound modifications to the network’s political structure.
These modifications are described in detail in Cardano Improvement Proposal (CIP) 1694 by the developers. This proposal states that Chang will eventually permit the election of Delegate Representatives (DReps) by Cardano ADA token holders.
