With the upcoming Vasil hard fork, Cardano is expected to see an overhaul on the network. The focus will be on ramping up throughput and smart contract improvements.
In a recent report, on-chain analytics platform, Messari observed that Cardano is “priced more aggressively” when compared to other growing ecosystems due to Vasil. It further said the market seems to be expecting significant improvement from the much-anticipated upgrade.
Cardano Overvalued?
Cardano has been trailing behind its contenders such as Solana, Algorand, Tezos, and NEO in terms of the number of daily transactions. On the other hand, Cardano leads with respect to the active user multiple, transaction multiple as well as TVL multiple. These metrics essentially assess the value of an asset. As per Messari’s findings, Cardano is overvalued ahead of the hard fork.
The proponents of the proof-of-stake blockchain, however, believe that it is the other way around. One such is a Twitter user called “ADA Whale,” who called Messari’s report “flawed.”
“A meaningless table IMO as TVL is a fake/gamed stat, transactions don’t work like that on UTxO and revenue is a plainly flawed metric borrowed from Ethereum’s misery.
ADA Whale further went on to add,
“Convinced that applying these sorts of traditional multiples – especially when based on inaccurate or flawed metrics – will mean that you continue to not get what drives value in crypto.”
Accumulation Trend
The Vasil upgrade has been delayed multiple times. This drew ire across the industry, but the IOG developers have maintained that they would not rush into it.
Kevin Hammon, Technical Manager of Input Output Global, earlier revealed that the team is fixing and testing thoroughly to ensure no significant issues are left out. The firm’s CEO, Charles Hoskinson, further confirmed that he does not anticipate any further delays. Despite the lack of a concrete timeline, Vasil is slated to hit mainnet in the next couple of weeks.
Despite the delays, certain ADA holders appear to be optimistic. The medium-sized investors of the token have added almost 80 million of the tokens in a month, according to Santiment’s latest data. A similar trend has been observed for the small ADA holders as well. This cohort, too, has resumed hodling.
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