Via an official post, Cardano developer Input Output Global (IOG) confirmed the approval and implementation of a proposal to increase the block size of the network. Currently at 80 kilobytes (KB), the mainnet will see a 10% increase to 88 KB.
The deployment is scheduled for today, April 25 at 20:20 UTC, at the epoch 335 limit, as confirmed by the company. IOG called the proposal a “significant network improvement” intended to increase Cardano’s throughput and the performance of its decentralized applications (dApps).
As the company has reiterated, Cardano has seen a series of network upgrades that will see it improve its scaling capabilities in 2022. IOG added that it will closely monitor the increase in block size for future changes:
Once deployed, we will closely monitor network performance and behavior for at least one epoch (5 days) to determine the next increment. Cardano has seen phenomenal growth over the past few months, with performance improvements to match.
Additionally, the company claims that Cardano has seen a “tremendous recent increase in trading volume.” In this sense, with the addition of other improvements, they expect this trend to continue.
IOG is focused on optimizing Cardano as it prepares for its next Hard Fork Combinator (HFC) event scheduled around June this year. IOG added:
Cardano is one of the most decentralized blockchains in the world, designed to be correct and secure. As the ecosystem grows, we are focusing on the scaling phase of our roadmap, improving network speed and capacity while maintaining security and decentralization.
As reported by NewsBTC, the network appears to be seeing an increase in institutional demand, according to data from IntoTheBlock.
The on-chain trading volume for ADA seems to be in an upward trend since the beginning of February. This data appears to match IOG’s statements on Cardano’s growth.
The volume of on-chain transactions >100,000 dollars has multiplied by 50 in 2022.
Yesterday, a total of $69.09 billion ADA was moved in these large transactions, representing 99% of the total volume on the channelhttps://t.co/8ME8STvRSF pic.twitter.com/aqH7hYIPiV
— IntoTheBlock (@intotheblock) March 29, 2022
What’s wrong with Cardano (ADA)?
Data from Token Terminal paints a different picture. As seen below, ADA’s trading volume saw a massive surge in late 2021 as the crypto-currency started persistent price action on the downside.
This suggests that investors started taking profits on ADA at that time. Since that time, the cryptocurrency has seen a surge in trading volume in January, leading to further losses for ADA.
Only the increase in trading volume for the months of March and April allowed this cryptocurrency to make a profit. Read also: The Cereal Club sells 10,000 copies of its NFT collection in 24 hours. It remains to be seen whether the network improvements, as IOG claims, will be effective in bringing more users into the Cardano ecosystem, which could lead to a sustained price recovery.
IOG CEO Charles Hoskinson reflected on ADA’s recent price action. In response to a holder’s concern about the cryptocurrency’s recent downtrend, and what the possible factors are behind it, Hoskinson said:
Nothing. Markets go up and down. Cardano is stronger and more useful as an ecosystem than it has ever been.
At the time of writing, the price of ADA is trading at $0.8 with a 2% loss on the 4-hour chart.
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