• 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. 

Cardano addresses

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. 

FXStreet analysts have also evaluated Cardano's price trend and noted that the ADA has great upside potential and is preparing for a rebound. 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Scam Alert: How to avoid trouble on Terra’s LUNA 2.0 airdrop

Scam Alert: How to avoid trouble on Terra’s LUNA 2.0 airdrop

The LUNA hard fork is set to occur on May 28, followed by the subsequent airdrop of LUNA 2.0 tokens to eligible holders. Ahead of the real LUNA 2.0 airdrop, some scammers have tried to lure LUNA and UST holders to send their assets in lieu of receiving the new tokens. 

More Terra News

Bitcoin Weekly Forecast: On-chain metrics support multiplying downside threats

Bitcoin Weekly Forecast: On-chain metrics support multiplying downside threats

Bitcoin price consolidates above a weekly support level after the LUNA-induced crash on May 12. This coiling price action could cause BTC to trigger a move to the downside, further deepening the woes of investors.

More Bitcoin News

This Web3 move by Crypto.com could be a good bet for patient investors

This Web3 move by Crypto.com could be a good bet for patient investors

Crypto.com price stabilization on a high time frame chart indicates that a bottom formation could be taking place. This pattern combined with a bullish signal from a momentum indicator adds credence to the possibility of a reversal and a recovery rally for CRO.

More Crypto.com News

Why Elon Musk’s tweet failed to move Dogecoin price

Why Elon Musk’s tweet failed to move Dogecoin price

Dogecoin price slipped up as Bitcoin price triggered a sudden crash on May 26. This downswing, while serving as a great opportunity to accumulate DOGE, failed to recover alongside BTC.

More Dogecoin News

Bitcoin: On-chain metrics support multiplying downside threats

Bitcoin: On-chain metrics support multiplying downside threats

Bitcoin price consolidates above a weekly support level after the LUNA-induced crash on May 12. This coiling price action could cause BTC to trigger a move to the downside, further deepening the woes of investors.

Read full analysis

BTC

ETH

XRP