ADA token BOOMING! Here are the factors behind this rally

Cardano blockchain’s ADA token is witnessing a hot streak. The cryptocurrency is booming for the second day in a row.

The cryptocurrency witnessed a spike of over 8 per cent in the past 24 hours, data from CoinMarketCap showed. The token was over 30 per cent up yesterday, as previously reported by Business Today.

The cryptocurrency has maintained its upward momentum and was trading at $0.634 in the wee hours of Wednesday morning.

 

 

The ADA token also surpassed the Ripple blockchain network's XRP and the Solana blockchain network's SOL to become the sixth most valued cryptocurrency.

 The 24-hour trading volume of the cryptocurrency also went up 146.40% per cent and was at $3,148,417,853.

What are the reasons behind this rally?

The imminent Vasil hard fork is one of the major factors that may have pushed Cardano blockchain’s ADA token’s price up. Vasil hard fork will be a network upgrade that will improve the Cardano blockchain's scalability. The hard fork is set to take place in June.

A hard fork in blockchain technology is a significant modification to the network's protocol that validates previously invalid blocks and transactions, or vice versa.

In layman's terms, a hard fork happens when nodes of the most recent version of a blockchain no longer accept prior versions, resulting in a permanent separation from the previous network version.

It is interesting to note that the Vasil hard fork is a much-awaited scalability upgrade that will significantly improve the blockchain network's throughput, giving it an edge over other blockchain networks.

 Another reason why Cardano is witnessing a rally in its value is the fact that data shows there has been a considerable increase in the issuance of native assets on the network. Over five million non-fungible tokens have now been minted on the Cardano blockchain network which is home to the ADA token.

 Also Read: What is crypto gas fee, and how do NFT creators negotiate? Find out. - BusinessToday

Also Read: Cryptocurrency ADA maintains rally; Ether, Solana show downtrend - BusinessToday