Cardano’s Chain Upgrade Event Could Possibly Make a Price Change

    Pathik Bhattacharya
    Pathik Bhattacharya

    Updated on January 16, 2023 07:35 AM

    Published on January 07, 2023 04:58 AM

    Support for SECP256k1, the elliptic curve used to secure blockchains such as Bitcoin and Ethereum, will be added in Protocol Version 8.

    Cardano’s Chain Upgrade Event Could Possibly Make a Price Change
    Source: Unsplash

    The next Chain Upgrade Event (CUE) on the Cardano blockchain, termed Protocol Version 8, will improve the network's interoperability with other blockchains such as Bitcoin and Ethereum. The update will include support for SECP256k1, an elliptic curve used for cryptographic security in other blockchains.

    The concept was recently emphasized by ThePizzaKnight, an anonymous Cardano enthusiast with extensive knowledge of Cardano development, who simplified it for the ordinary reader. He claims that the event will promote interoperability with Bitcoin, Ethereum, and other forthcoming sidechains, such as the ZK-powered Midnight project. Today, Cardano founder Charles Hoskinson retweeted the thread, lending credibility to the development.

    To emphasise his thesis, he compared cryptographic primitives to real-world language families like English and Spanish. Cryptographic primitives are the algorithms that are utilized to secure our data. They aid in the protection of our crypto assets against theft.

    Cryptographic primitives include elliptic curves. While several blockchains, including Bitcoin and Ethereum, employ the elliptic curve known as SECP256k1, Cardano employs curve25519. These are analogous to separate languages, making it impossible for Cardano to connect with blockchains that employ SECP256k1.

    The Protocol Version 8 upgrade, on the other hand, will feature native support for SECP256k1 on the Cardano blockchain. This new feature will improve inter-chain operability by providing Cardano with the ability to interface with other chains such as Bitcoin and Ethereum.

    Developers will profit from the development by bringing new cross-chain options, as they will have access to other chains and coins while creating on Cardano. To that end, users should persuade their Stake Pool Operators (SPOs) to upgrade their Cardano nodes to version 1.35.4.

    The Cardano Foundation, IOG, and Emurgo have set a tentative release date of early February.

    The Protocol Version 8 upgrade is one of the most major upgrades to the Cardano chain since the September 2022 hard fork. IOG announced the availability of all Vasil features on the Cardano mainnet five days after the successful activation of the Vasil update on September 22.

    Notably, just two weeks after the Vasil upgrade, the number of Cardano smart contracts increased by 100, indicating increased adoption as the upgrade introduced more network scalability.

    Related Read: “Cardano is Undervalued,” Says Santiment, Could Make Huge Changes

    Cardano Price Analysis

    Cardano's current price is $0.282914 USD, with a 24-hour trading volume of $202,847,394 USD. Cardano has increased by 2.94% in the previous 24 hours. ADA is currently ranked #8 on CoinMarketCap, with a market cap of $9,765,819,191 USD. It has a total quantity of 45,000,000,000 ADA coins and a circulating circulation of 34,518,639,817 ADA coins.


    Source: CoinMarketCap

    Also Read: Cardano's (ADA) Major Developments

    Cardano's one-day price analysis reveals that it is up 3% in 24 hours and is currently trading at $0.274. Cardano price research shows that for the last 24 hours, the value has been following an ascending channel. The ADA/USD currency pair has entered a bullish zone and is now trading around $0.274. The bulls will aim to exploit any market weakness and drive the price up to the $0.2756 resistance level.

    Cardano's relative strength index (RSI) is currently at 58.08, indicating that the market may be overbought in the short term. The moving average convergence and divergence (MACD) line is above the signal line, and the histogram is in the positive zone, indicating bullish trend. The 20 EMA is currently at $0.2740, is going up, and is above the 50 EMA, which is currently at $0.2614, showing that the bulls are in control of the market.

    Source: TradingView

    The four-hour Cardano price analysis shows that the market is on a bullish streak. The graphic illustrates that cryptocurrency has been on an upward trend in recent hours. The market has been trading around $0.274 for the previous four hours, and it is projected to rise higher as the bulls maintain control, with resistance at $0.2756 and support at $0.2657.

    The 4-hour relative strength index (RSI) is currently at 68.80 and is approaching the overbought zone, indicating that the coin is in bullish momentum. The moving average convergence and divergence (MACD) line are above the signal line, indicating a bullish trend. The 20 EMA is currently at $0.2738 and is going up, while the 50 EMA is at $0.2706, indicating an uptrend.

    Source: trading view

    Cardano FAQs

    What are the downsides of Cardano?

    One of Cardano's disadvantages is that its blockchain is still in development. Many critical elements, such as scalability, are still being developed, though progress is being made. Ethereum is also working on scalability improvements through sharding, which is a major threat to Cardano.

    What will Cardano be used for?

    Smart contracts may be developed on the Cardano blockchain to provide decentralised apps and protocols. Additionally, there are several uses for the capability to transmit and receive money immediately for low costs in the corporate and financial sectors.

    How many ADA Cardano is left?

    There are now close to 34 billion Cardano tokens in circulation out of a total finite quantity of 45 billion tokens. That indicates that there are around 11 billion ADA tokens still available.