After the successful release of its 1.5 mainnet, Cardano (ADA) has broken out from its normal trading range, reaching 2019 highs. It appears that after consistently meeting development and restructuring the Cardano Foundation that cryptocurrency enthusiasts are beginning to take notice.
Recent Trading Activity
Previously, Cardano was trading between $0.0363 and $0.0534 over the last three months. Within hours of the 1.5 release, the upper bound of this range was once again tested with Cardano jumping from $0.0502 to $0.0537, a 7 percent increase. Within 48 hours ADA broke out of its normal trading range and hit $0.0549, triggering a round of sell-offs:
Once these sells were exhausted, within 14 hours the price of Cardano returned to previous resistance around $0.0530, shortly before breaking through this resistance to reach 2019 highs of $0.0587; ADA has not traded at these prices since November of 2018.
That said, the coin is still only trading at a fraction of its January 2018 all-time highs of $1.33. The coin is currently trading at roughly 1/22 of these highs now.
Factors Behind the Movement
What appears to be the largest factor behind the price movement is the successful release of Cardano’s 1.5 mainnet.
The release represented the final stages of the project’s “Byron” phase of development, which notably included an intermediary consensus protocol for the projects move to “Ouroboros Genesis,” an improved proof-of-stake consensus protocol. The update also included a number of other improvements, mostly around the project’s primary cryptocurrency wallet, Daedalus.
Other factors influencing the price could be the delayed impact from restructuring the Cardano Foundation. Michael Parsons, the former CEO the Cardano Foundation, resigned following months of tumult between IOHK, Emurgo, and the Foundation in December.
Between the three branches of Cardano’s government, the Foundation was tasked with “driving adoption, releasing news, conducting evangelism, and marketing the project.”
However, the community claimed that the Cardano Foundation failed in most of its responsibilities, with one petition claiming it “failed to build and lead a competent organization.” Cardano founder Charles Hoskinson and Emurgo CEO Ken Kodama agreed.
In response to the resignation, Hoskinson said the community is “waking up the Foundation and getting it where it was supposed to go,” indicating the Cardano is ready to more actively participate in community building and marketing. Three months later, perhaps ADA is seeing the benefits of a stronger Cardano Foundation and better marketing.
Overall, it appears that Cardano has been focused on the long-term viability of the project. Beyond mere marketing, the project seems to prioritize improving the utility of its blockchain and the soundness of its technology. Now, it looks like it is paying off.