Cardano rallies over 5% after Valentine upgrade goes live
The Cardano (ADA) blockchain has released the latest network updates that aim to help the network establish itself in the decentralized finance (DeFi) space while influencing tha value of its native token.
In this line, ADA’s weekly chart shows positive gains aligning with the network’s Valentine (SECP) upgrade. By press time, ADA was trading at $0.40, recording gains of about 5% since the upgrade went live on February 15. On the weekly chart, Cardano is up over 9%.
Impact of Valentine upgrade
In the latest updates released by the platform’s parent company, Input Output, on February 17, the Valentine upgrade aims to improve security and interoperability features on the blockchain.
“Interoperability is key for blockchain growth. As more dapps are built on Cardano, it is essential that they are not siloed to just one ecosystem, enabling users to interact with different blockchains and access a wider range of services,” IOHK said.
Earlier in February, a proposal to improve cross-chain functionality for DeFi applications on the network was submitted and subsequently approved by network validators. As a result, the upgrade was rolled out to benefit DeFi applications building on the network.
At the same time, IOHK released updates on the latest network metric, with a total number of Cardano projects standing at 116 while projects building on the platform stand at 1,204.
From the front of the smart contracts front, the feature continues to surge, with the number of Plutus scripts nearing the 6,000 milestones to stand at 5,798. At the same time, the Cardano blockchain has recorded 61.4 million transactions.
Overall, the sustained network activity has been touted to impact the price of ADA. The launch of Djed stablecoin is also expected to be a significant factor in driving the value of ADA, in addition to network metrics. The stablecoin is projected to enhance Cardano’s prospects by increasing the Total Value Locked (TVL) metric, a crucial indicator of blockchain activity, particularly in the decentralized finance sector.
Cardano technical analysis
Currently, ADA is dominated by bullish sentiments, as highlighted by the one-day gauges on TradingView. A summary of the gauges indicates the ‘buy’ sentiment at 12, while moving averages are for a ‘strong buy’ at 12. Oscillators are recommending ‘sell’ gauging at 2.
Following the recent general market rally, it was rallying, targeting the valuation of $1, but the asset is still facing resistance at $0.5.
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