ADA price is recovering after floating about $0.25 for a month. The native Cardano token has skyrocketed with a price increase of almost 30% since the arrival of the New Year.
The hype around the upcoming launch of Cardano’s DJED stablecoin could be among the factors driving the price of ADA. The news of the new Hoskinson clinic that would accept ADA as payment could also have contributed to the crazy rise of the token.
ADA opened this week with a nearly 10% increase in trading price, which has made Cardano founder Charles Hoskinson swell with pride. hoskinson took to Twitter and responded to comments about the skyrocketing price of ADA. He boasted that additional gains are on the way with upcoming improvements to the Cardano Network.
According to Charles Hoskinson’s reply tweet, the proposed CIP 1694 and MBO will strengthen the Cardano community. Voltaire’s update would see millions of people contributing to the growth and usefulness of ADA.
What is IPC 1694?
The Cardano Improvement Proposal (CIP) 1694 seeks to bring Cardano into the Voltaire Age. The CIP 1694 update is the foundation of a decentralized decision-making system. Jared Corduan, lead software engineering at Input Output Global, the developer of Cardano, proposed its adoption and vote in November 2022.
The CIP aims to enable a smooth transition to fully decentralized governance. Following the Cardano roadmapCIP 1694 is the fifth and final stage of network development after the Alonzo and Vasil update.
According to Charles Hoskinson, Voltaire will set the pace on how to implement decentralized blockchain management in the crypto industry.
Since the publication of the vote and adoption proposal, some members of the community have been studying its details. A Cardano-based output provided details about the CIP, beginning with a video explaining the voting section. They released another video explaining the state government section of the CIP.
hoskinson praised the community efforts to learn about CIP and encouraged them to share opinions about its advantages and disadvantages. According to The Cardano roadmap, the Voltaire update would introduce a community-controlled voting and treasury system. These functions will allow participants to use their bets to influence future developments of the network.
Expanding Cardano’s decentralization could further increase ADA adoption and increase the value of the token.
Previous Cardano upgrade, was it a success?
Voltaire would be the next Cardano upgrade after the Vasil hard fork in September 2022. Vasil presented CIP (Cardano Improvement Proposal) -31, 32 and 33, each with unique scaling properties.
CIP-31 brought a new reference input mechanism to allow DApps to easily access transactional output data. CIP-32 enhanced Cardano’s decentralization by providing on-chain data storage functionality for network users. The CIP-33 was designed to allow faster processing time and reduced transaction fees.
The Vasil hard fork went live successfully on September 22, 2022, after facing several delays. The purpose of the Vasil update was to improve scalability, overall transaction performance, and the ability to develop DApps on the network. However, it had little effect on ADA performance. The cryptocurrency continued its journey down the bottomless pit.
ADA experienced a month-long decline in value until January 2022, when it began to recover. ADA is currently trading at $0.316 with a 24-hour price increase of 12.40%. Who knows? The upcoming CIP 1694 update could bring notable improvements to the Cardano Network that could add more upward momentum to the ADA price.
Featured image from Pixabay and charts from Tradingview.com
