Cardano’s price momentum has pushed the value of its decentralized ADA vault back to the $500 million level. The catalyst could be an upcoming hard fork.
Vasil drives Cardano
One of the most popular blockchains is facing another update. Vasil hard fork is fast approaching. The event scheduled for the end of June was preceded by a testnet launch. It is probably this factor that made the native ADA token, in just four days, gain nearly 50% in value.
You can read more about it in the article “Cardano’s Hoskinson confirms upcoming Vasil hard fork will happen as planned”.
The result of the developers’ actions is an increase in the value of Cardano’s vault, which has once again surpassed the $500 million barrier, representing 927.2 million ADA.
Vault’s important role
Cardano’s vault value is far from its record levels, which have exceeded $1 billion in the past. The declines in the cryptocurrency market, which began back in November, and with the Terra Luna meltdown caused a decline in confidence in digital assets. In its turn, this also resulted in a weakening of ADA.
However, solid projects, in the long run, can fend for themselves. According to experts, Cardano is this type of blockchain.
One of the unique factors building its ecosystem is the vault. According to Charles Hoskinson, it is decentralized and funded mainly by the community. This distinguishes it from many other crypto projects, often funded by Venture Capitalists.
The essence of Cardano Vault is to support developers building their applications in this very ecosystem. It provides a seamless web experience.
Lack of Venture Capital support is not a problem
The creator of the Cardano project, Charles Hoskinson, has repeatedly pointed out that a large part of the cryptocurrency media is quite indifferent to the blockchain he is creating. He has pointed out that Venture Capitalists are also showing no interest in his cryptocurrency. Despite this, the development of the ADA space and its growth is going very smoothly. One of the reasons is supposed to be the very decentralized nature of the vault and its strong support from the community.
Meanwhile, Cardano has decelerated at the upper limit of the Bollinger Bands after a multi-day rally. We expect an attempt to confirm the rise by holding the 20-day SMA. Unfortunately, at the same time, the RSI indicator is experiencing a bearish divergence, which may cause an imminent decline in the ADA coin, along with the treasury valuation.