- Cardano (ADA) trading volumes are declining despite developer activity.
- What is the Mithril upgrade about?
- Could it boost the ADA price?
YEREVAN (CoinChapter.com) – Cardano token ADA price changed hands at $0.31 in the European session on July 27, after a 4% uptick in the previous 48 hours. The latter came as a part of a larger upward movement, as ADA bottomed out at $0.25 on June 20.
However, the declining daily chart trading volumes indicated a low enthusiasm level among ADA investors ahead of the Mithril upgrade.
However, the blockchain still ranked #3 among crypto assets with the highest developer activity. According to on-chain data tracker Santiment, Cardano came third after Polkadot (DOT) and Kusama (KSM) by the number of commits on GitHub.
Thus, a question arises if the upgrade can pump the Cardano token higher in the coming month.
Can Cardano Mithril upgrade pump ADA price?
Before jumping to conclusions about the upgrade, discussing Mithril itself and its significance is essential. According to Input Output Hong Kong (IOHK), the developing force behind Cardano, “Mithril is a stake-based signature scheme and a protocol that improves the speed and efficiency of nodes’ syncing times.”
In plain English, it means that come Mithril, the network will become more efficient and capable of supporting a wider range of applications. The developers claim that the upgrade is in its final stages and will be ready for its mainnet launch “soon.”
According to the roadmap presented by the company, Cardano (ADA) Mithril upgrade is now past its beta phase and getting ready for the second development stage, while the ecosystem is earmarked for 2024.
Meanwhile, the effect on ADA price is unlikely to be substantial if the past is any indication.
Cardano upgrades rarely boost the token price
According to the weekly chart below, as Cardano followed its roadmap, the ADA price rather followed the overall climate of the crypto market. Conversely, the upgrade influence was quite erratic throughout the “eras.”
Thus, if the past is any indication, the Mithril upgrade is unlikely to cause a rocketing ADA price in August.
However, according to the on-chain analysis by IntoTheBlock, over 85% of ADA holders are at a loss at the moment, which means they are more likely to hold their funds in the hope of profit than sell at a loss.