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Cardano: IOG Completes Major Milestone Ahead of Mainnet Vasil Upgrade, ADA Price Outlook

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Blockchain projects have committed to further advancing their ecosystems even as the bear market weighs heavy on native tokens. Cardano's developer Input Output Global is one of the many companies that have committed to bringing more utility to its network despite recently having a setback in the delivery timeline of the Vasil upgrade.

Taking a “safe and secure” approach

The company revealed ahead of the initial release date that it had resolved to hold back on the mainnet upgrade, justifying the decision by the need to go through all its Plutus V2 test scripts. Over the weekend, IOG shared a development update: the successful roll-out of node 1.35.0, which is an integral candidate for the anticipated hard-fork event.

The developer noted that the team had checked all key elements of its software, adding that testing on the Plutus v2 code yielded a positive outcome both performance- and cost-wise. The research and development company maintained that it would prioritize the security and safety of partnering entities within the ecosystem.

“We're code complete on all the core #Cardano software. Testing on the new #Plutus v2 code (including new CIPs which significantly improve smart contract performance) has been successful and delivered very positive results in terms of performance and improved cost.”

The development team is now focused on getting ready for the launch of the hard fork on the testnet.

Significantly closer, but when Vasil?

In line with this, the team said it had notified stake pool operators so they could deploy the newly tagged node. Once the threshold number of SPOs required for acceptable chain density for the hard fork (more than 75%) is achieved, the team will proceed with the submission of the testnet update proposal.

The hard fork event is tentatively set to happen towards the end of July at the earliest as per the revised schedule. The specific date for the mainnet release is yet to be communicated, but it said SPOs and other involved parties need about four weeks to wrap up testing and integration tasks.

Why Cardano took a calculated delay on the Vasil upgrade

IOHK's Head of Delivery and Projects, Nigel Hemsley, in a blog post published last Monday (June 20), explained that the delay was due to seven pending bugs that needed more time to fix, but none of them was severe. The milestones towards the upgrade have been some of the most complicated to design and integrate thus far.

Hemsley explained that it is an intricate process that demands close ecosystem collaboration in addition to tremendous effort from the involved teams. Cardano founder Charles Hoskinson remarked in a subsequent 15-minute video clip that the delay was done to accommodate additional tests necessary in delivering the best possible environment post-Vasil to dApp developers.

Cardano (ADA) price action

The Vasil hard fork is particularly massive for Cardano and could significantly affect the price of the ecosystem's native token, ADA, depending on its reception. The majority expect the hard fork and the anticipation of the mainnet release to potentially trigger a bullish run.

ADA/USD June trading chart

Over the weekend, the ADA/USD climbed to a 7-day high of $0.524 but has since retraced. The token was, at press time, spotted changing hands at $0.50, having retreated 3.78% in the last 24 hours.

While ADA has failed to retest $0.55 for two weeks since it dipped below this price mark on June 12, analysts expect the token to break from the bear's grip in the current $0.48 – $0.52 range soon. This projection is based on ADA managing to overcome resistance at the crucial $0.57 level defined by the 50-day Exponential Moving Average (EMA). The technical analysis suggests that ADA price can rally to $0.63 if more buyers enter the market and secure support at $0.57, where upside momentum is expected to wane.

Existing holders must also repress the impulse to lock quick profits at the latter price mark for the hypothesis to stand. A buildup of selling pressure at or slightly below that mark could force some traders to book profits, which will likely set ADA price on a descending path.

To learn more about Cardano visit our Investing in Cardano guide.

Sam is a financial content specialist with a keen interest in the blockchain space. He has worked with several firms and media outlets in the Finance and Cybersecurity fields.