Cardano’s blockchain is undergoing a critical transformation with the introduction of the Chang hard fork. This upgrade is designed to enhance the platform’s decentralized governance features, which are central to Cardano’s long-term vision.

The Chang upgrade is being rolled out in two distinct phases. The first phase, known as Chang #1, began last month and focuses on laying the groundwork for more robust decentralized governance. The upgrade is a significant step forward for ADA, promising to improve how the platform operates and makes decisions.

Chang Upgrade Progress

As of now, Cardano has made notable progress with Chang #1. The crucial metrics for this phase include updating 70% of the stake pool operators (SPOs) to the new Node v9.1.0 version and achieving 85% of exchange liquidity on the Chang main net candidate.

Stake Pool Operator Readiness

Cardano has successfully met the first target, with 74.02% of all blocks created in the last eight hours coming from nodes running the v9.1.0 release. This level of readiness indicates strong support from the network’s validators, which is vital for the success of the upgrade.

Exchange Liquidity

However, progress on the exchange liquidity front is slower. As of the latest data, only 20.16% of exchange liquidity is aligned with the Chang main net candidate. Six exchanges, including WhiteBIT, Bitfinex, and BitMart, are fully prepared for the upgrade, while 16 additional exchanges are working to integrate the new node version.

The second phase of the Chang upgrade, which will introduce final governance features, is anticipated later this year. However, no specific timeline has been provided for this phase.

Network Activity and Ecosystem Growth

Despite the technical advancements with the Chang upgrade, Cardano’s ecosystem and network activity have shown mixed signals. According to blockchain analytics firm Sentiment, Cardano ranked third in notable development activity over the past 30 days as of August 5th. This suggests ongoing innovation and progress within the Cardano development community.

User Engagement and Network Activity

However, data from AMBCrypto and IntoTheBlock indicates a stagnation in user growth. The number of Cardano addresses with an active ADA balance has remained relatively steady at 4.45 million for over a year. Network activity, including transaction count and active user base, has also been stable but not particularly dynamic.

Cardano’s on-chain volume settled around $7.2 billion daily, reflecting a Network Value to Transactions (NVT) ratio of just 2.62. This low NVT ratio suggests that ADA might be undervalued relative to its usage, potentially pointing to a disconnect between the network’s value and its trading price.

ADA Price Action and Market Sentiment

The price of ADA has been struggling despite the technical progress with the Chang upgrade. Since mid-March, ADA has been in a downtrend, falling from $0.82 to $0.39 by late June. Recent weeks have seen the token break below the critical support level of $0.32, intensifying the downward pressure on the price.

Recent Price Movements

In recent trading, ADA attempted to recover and retest the $0.40 mark, but faced rejection at $0.45 in mid-July. As of now, the ADA/USDT pair is trading at approximately $0.34, below its 100-day and 200-day simple moving averages (SMA). This price action reflects a cautious market sentiment, with speculators closely watching key support and resistance levels for further direction.

Market Outlook

The current market conditions for ADA are mixed. While the technical improvements brought by the Chang upgrade are promising, they have not yet translated into a significant price boost for ADA. Investors and analysts are keeping a close eye on how ADA performs relative to key price levels and the broader market trends.

Conclusion

Cardano’s progress with the Chang upgrade marks an important step towards enhancing its decentralized governance. However, ADA’s price struggles persist, reflecting broader market challenges and investor sentiment. As Cardano moves forward with the upgrade, the cryptocurrency community will be watching closely to see if these technical advancements will eventually lead to a recovery in ADA’s price.

In summary, while Cardano’s technical achievements are notable, the road ahead for ADA remains uncertain. The cryptocurrency’s price performance will likely continue to be influenced by a combination of technical factors and broader market dynamics.