Crypto investors rush to buy ADA as Cardano increases overall capacity with higher block size
- Cardano network’s capacity would increase to 80KB with update from developers at Input Output Hong Kong.
- Massive demand from whales creates a demand wall for Cardano, this could prevent the altcoin’s price from dropping.
- The changes are scheduled to go live on February 4, boosting Cardano’s throughput.
- Analysts believe if Cardano price trend remains same as last two days, the altcoin could hit new all-time high in March.
Input Output Hong Kong’s next parameter update for the Cardano network is set to increase the network’s capacity and throughput. This has created a spike in demand for Cardano with a 15,000% increase in whale wallets.
Cardano demand skyrockets with massive demand wall
Developers of the Cardano network, Input Output Hong Kong, are working on a new upgrade for the Ethereum-killer. The upgrade would boost the throughput of transactions on the network and boost capacity.
An 11% increase in capacity and higher memory units per transaction together improve the “real world” performance of Cardano. The upgrade is set to go live on the Cardano mainnet on February 4, 2022.
Investors appear to be bullish on all the solutions that Cardano is implementing to scale the network, which can be seen from an on-chain perspective. Data from blockchain analytics firm Santiment shows that the number of addresses holding 10,000 to 1,000,000 ADA has skyrocketed by a whopping 15,000% since December 2021.
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ADA Supply Distribution
The spike in ADA holders combined with massive demand from traders could fuel a bullish impulse for the token's future price. Some of the most renowned traders in the industry, such as Ali Martinez, believe Cardano sits on top of a crucial support wall that might ensure prices do fall below $1.
#Cardano found stable support!@intotheblock's IOMAP shows that 341,500 addresses had previously purchased 7.65 billion $ADA at an average price of $1.
— Ali Martinez (@ali_charts) February 1, 2022
Such a massive demand wall may have the strength to prevent #ADA from dipping lower. pic.twitter.com/htsYt6VaMw
FXStreet analysts have also evaluated Cardano's price trend and noted that the ADA has great upside potential and is preparing for a rebound.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
