ADA Price Remains the Same as Cardano Meets the Most Recent Scaling Objective

The first Hydra Heads have launched on the public Cardano testnet, as confirmed by Charles Hoskinson.

The first Hydra Heads have launched on the public Cardano testnet, after nearly a year has passed since the release of the original paper according to Cardano (ADA) Founder Charles Hoskinson.

The scaling quest of Cardano begins with Hydra Heads, the first of a series of protocols. Hydra is the name given to a group of Layer 2 products that are specifically designed for network security and scalability optimization. Since the release of the initial paper, it has taken on a mission of its own even though initially it was developed by the efforts of the Ouroboros research team.

What Hydra does for the network is decrease delays and congestion, increase throughput, and limit the need for mass storage when providing cost-efficient services to users. 

Certainly, more complex alternatives will be available, and Hydra Heads is a key building block, facilitating said alternatives through leveraging the opportunities of the Extended Unspent Transaction Output (EUTXO) model, as revealed in a blog post by IOHK. 

As a result, they provide a solid basis for building the scaling layer of Cardano. While this surely signifies an imperative milestone, the best is yet to come. When a limited number of individuals need to comprehend a lot of information quickly, Hydra Heads excel.

Charles Hoskinson re-emphasized that June will come with a mass volume of projects, right after the launch of the Vasil hard fork. A series of scaling improvements are expected to take place by the end of the year, says IOHK, as it shines a light on June and October events that encompass the hard fork combinator (HFC). Currently, Cardano has over 500 projects running on its blockchain

Now, even though there are many upgrades happening in the Cardano ecosystem, the price of Cardano (ADA) leaves much to be desired as it is out of sync with the successful projects of the blockchain. 

Right now, Cardano (ADA) is stabilizing at $0.81, having fallen over 75% since the $3.10 all-time high in September after the Alonzo hard fork launch. If the bulls are willing to maintain a grip around the $0.74-$0.81 range, Cardano (ADA) may attempt a short-term recovery.

To stimulate any rebound and suppress price dips in the near term, closing above the daily MA 50 at $0.96 may be required. A closing under $0.74 could signal a continuation of the downtrend, should bullish investors lose their pace. 

As the correlation between Cardano (ADA) and Bitcoin (BTC) has increased to 68% in a 30 day period, investors will surely watch Bitcoin (BTC) more closely.