Vasil upgrade likely to cause an increase in Cardano-built projects.
IOHK vice president, Tim Harrison, has claimed that the Cardano community is increasing. He added that the projects being built on the Cardano network might soon reach 1,000. Harrison shared a chart to support his claims. The chart showed 914 projects currently built on the Cardano network. Tim Harrison’s claims were shared on Twitter by the popular crypto enthusiast Carolin Taling.
— Carolin Taling (@carolintaling) April 28, 2022
- The lion’s share goes to the NFTs collections project, representing 46.7% of the total project taking place on Cardano.
- In second place are decentralized exchanges. The DEX share is 3.8 percent.
- NFT marketplaces, wallets, and gaming claim a 4.1, 3.8, and 4.2 percent share.
The chart breakdown shows that most projects are NFT-related, while marketplace-related projects come second. Harrison further claimed that the Cardano community is thriving because of the network’s low fees and zero smart contracts experience.
The IOHK vice president also remarked that there had been many DeFi projects (especially DEXs and Dapps) on the Cardano network because of Cardano’s UTXO model.
Cardano’s UTxO, which utilizes a programming paradigm different for Dapps than account-based blockchains such as Ethereum, offers fee predictability, more powerful parallelization, and greater security. Harrison added that the number of Cardano-built projects would likely double or even triple after the Vasil upgrade, scheduled for June 2022.
The Vasil upgrade is expected to enhance smart contract capabilities on the network. Events in the next quarter of the year will tell whether Harrison’s prediction will come to pass. If Harrison’s predictions are true, it will significantly affect the price action of the network’s governance token, ADA.
On Tuesday, Cardano’s development team introduced a hard fork combinator that increased the network’s transaction processing speed by 10%.
ADA price action
ADA’s performance hasn’t been impressive, declining by nearly 9.5% this past week. ADA price failed to hit the $0.77 crucial support following the recent correction and bounced before it.
Hence, it may need to test this level before starting a strong bullish run. However, the $0.90 is its next crucial resistance; it’s unlikely that ADA will dip below the crucial support because indicators on the lower timeframes are bullish.