Successful Cardano 1.5 Upgrade Causes 22% Price Surge

Francisco Memoria

Cryptocurrency enthusiasts paying attention to Cardano (ADA) may have noticed the cryptocurrency’s price went up over 22% in the last seven days, helping it become a top ten cryptocurrency by market cap.

According to CryptoCompare data, Cardano’s price went from roughly $0.049 to about $0.061 at press time, after falling from a high of little over $0.07. In the last 30 days, the cryptocurrency is notably up over 32%.

Cardano's price performance in the last 30 days

The cryptocurrency has this week released its version 1.5, an important step towards the highly anticipated Shelley upgrade. This upgrade is notably going to see Cardano’s blockchain get rid of cryptocurrency miners, and instead rely on a proof-of-stake (PoS)-based system.

The cryptocurrency’s recent upgrade has seen it introduce a number of changes that are expected to smooth the transition toward Shelley. The version is reportedly going to see ADA implement a new consensus protocol known as Ouroboros BFT, which will effectively help it fend off potential 51% attacks.

Its upgrade has also seen it introduce new UX changes and other improvements.

The Cardano 1.5 release also makes many other improvements. These include performance improvements when rendering lists with a large number of transactions and wallet addresses, the addition of features for detecting insufficient disk space, and a new screen that visualizes the block storage consolidation process.

Cardano’s upgrade to the Ouroboros BFT is reportedly going to be implemented through a hard fork that will occur in a “smooth and automatic way.” Per an announcement, it’s a “planned protocol upgrade whereby all parties of the current federated system have agreed to the change.”

Coinbase Listing Rumors

Notably, some community members have been claiming Cardano may soon be listed on Coinbase, a popular cryptocurrency exchange. Its price may be rising over the rumors, as cryptos are known to see their value rise as soon as they’re listed on the exchange. In some cases, prices have risen before the tokens were listed.

As this has happened numerous times – and even led to complications when Bitcoin Cash was listed – it has become known as the “Coinbase Effect.” However, as XLM’s price didn’t rise suddenly after being listed on Coinbase Pro, some believe the effect is diming.

While it isn’t clear whether Coinbase will ad ADA to its platforms, it’s known the company has been considering it, as late last year it revealed a list of digital assets it was looking into, which also included NEO, EOS, XRP, and XLM.

Cardano (ADA) on Fire: Surges Above $0.10 to Get Into Top 6, Up 206% in 2020

At 16:00 UTC on Friday (July 3), shortly after IOHK, the company developing the Cardano (ADA) protocol, announced a custody agreement with Coinbase, the price of the ADA token went over $0.10 for the first time since October 2018, thereby making ADA the sixth most valuable cryptoasset by market cap.

Yesterday, on day two of the two-day "Cardano Virtual Summit: Shelley Edition", IOHK Co-Founder and CEO Charles Hoskinson announced that from Q4 of this year, Cardano blockchain users would be able to store their ADA holdings at Coinbase Custody "without losing the ability to delegate their stake."

On Tuesday (June 30), IOHK announced that the Shelley codebase had been released to Cardano’s mainnet (but note that the actual hard fork is not expected until around July 29):

Hoskinson had this to say about his company's agreement with Coinbase Custody, which "operates as a standalone, independently-capitalized business to Coinbase, Inc.":

"With Cardano, we believe we can create a revolutionary solution which will be able to offer access to finance and investment to swathes of the population who have previously been shut out of the system.

"This custody agreement allows us to offer the same secure storage solutions that can be found in traditional finance to ada holders, without sacrificing what makes Proof of Stake blockchains special - being able to participate in the network.

"We look forward to this partnership with Coinbase, and to continuing to bring cryptocurrencies closer and closer to mainstream adoption."

As for Sam McIngvale, Head of Product at Coinbase Custody, he said:

"We have been following the success of the Cardano incentivized testnet, with over a thousand registered stakepools during the testing period.

"We are pleased to have been selected as the custodian and we’re proud to be a full-service, regulated, comprehensively-insured, and 100% offline staking provider in crypto.

"The ability to successfully operate within a regulatory framework is essential for the long-term survival of cryptocurrencies.

"We are overseen by the same regulators, and held to similar capital requirements and audit requirements as a traditional financial custodian, which removes many of the perceived barriers to global acceptance of crypto."

IOHK's announcement was made just before 14:00 UTC on Friday (July 3). By 16:00 UTC, the ADA price had broken through the $0.10 resistance level for the first time since October 2018.

Currently (as of 07:34 UTC on July 4), Cardano's token is trading at $0.1003 (up 6.94% in the past 24-hour period), which makes it the sixth most valuable cryptoasset by market cap:

24 Hour CC Chart for ADA-USD on 4 July 2020.png

So far in 2020, Cardano's ADA has gone up over 206% vs. the dollar.