Betting big on its anticipated growth: Will the price of ADA surge next?
The Cardano community has given the green light to a significant grant worth over $70 million (approximately 96 million ADA) to Input Output Engineering (IOE) for executing major upgrades on the Cardano network.
The funding, which represents one of the largest treasury allocations in Cardano’s history, has been approved by nearly 74% of community voters. The grant will be disbursed in phases, tied to specific milestones, to ensure transparency and accountability.
IOE's planned upgrades aim to enhance network throughput, cross-chain functionality, and overall efficiency. This will enable Cardano to better support decentralized applications and further strengthen its blockchain infrastructure. Key upgrades include Ouroboros Leios, Hydra (scalability), Mithril (optimizations), and Project Acropolis (developer experience improvements).
The oversight for the grant will come from Intersect, a governance body, and on-chain smart contracts. IOE has pledged to provide monthly progress updates and quarterly budget reviews to keep the community informed.
The development roadmap is aligned with a surge in development activity and an increase in contributor count. As a result, ADA's price has rebounded to $0.735 as of early August.
Technical analysis indicates that ADA is currently trading at $0.7304, above the 200 EMA ($0.7067) and retesting the 50 EMA ($0.7240) as resistance. If ADA reclaims the midline and clears $0.74, it could target $0.79 next.
The potential for a sustained recovery in ADA's price is linked to the $70M grant approval and upcoming upgrades. However, failure to break above the 50 EMA may trigger another drop toward $0.68, maintaining a neutral-bullish price structure as long as support holds.
Bollinger Bands on ADA are tightening, suggesting a volatility squeeze could happen. Meanwhile, the MACD on ADA shows signs of easing momentum, hinting at a potential bullish crossover. This bullish sentiment is further strengthened by the increase in builder confidence during the period when ADA's price dropped below $0.62.
In conclusion, the $70 million grant is set to enable a major development phase to boost Cardano’s scalability and interoperability, improve developer tools, and maintain accountability through transparent milestone-based funding and regular reporting. This move is expected to solidify Cardano’s governance model while accelerating protocol development.
[1] Cardano community approves $70 million grant for network upgrades - CoinDesk [2] Cardano's $70 million grant: What it means for the network - Decrypt [3] Input Output Engineering to receive $70 million grant for Cardano upgrades - The Block [4] Cardano's $70 million grant: A step towards solidifying governance and accelerating development - Cointelegraph
- The approval of a $70 million grant for Cardano network upgrades by the Cardano community is expected to boost Cardano’s scalability and interoperability, improve developer tools, and maintain accountability through transparent milestone-based funding and regular reporting, as reported by CoinDesk.
- The large grant given to Input Output Engineering to execute major upgrades on the Cardano network, as detailed by The Block, is a significant move towards solidifying Cardano’s governance model while accelerating protocol development, as suggested by Cointelegraph.
- As the Cardano community votes to approve nearly 74% for a $70 million grant to Input Output Engineering for executing major upgrades on the Cardano network (Decrypt), the community anticipates that this will enable Cardano to better support decentralized applications and further strengthen its blockchain infrastructure, by enhancing network throughput, cross-chain functionality, and overall efficiency.
