• Cardano token (ADA) price changed hands at $0.31 in the European session on July 27, after a 4% uptick in the previous 48 hours.
• Despite this, daily chart trading volumes indicated a low enthusiasm level among ADA investors ahead of the Mithril upgrade.
• The effect on ADA price is unlikely to be substantial if the past is any indication, as upgrades rarely boost token prices according to past evidence.
Cardano Token Price
Cardano token (ADA) price changed hands at $0.31 in the European session on July 27, after a 4% uptick in the previous 48 hours.
Declining Trading Volumes
Despite this, daily chart trading volumes indicated a low enthusiasm level among ADA investors ahead of the Mithril upgrade. Moreover, the blockchain still ranked #3 among crypto assets with the highest developer activity according to on-chain data tracker Santiment.
What Is Mithril?
Mithril is a stake-based signature scheme and protocol that improves speed and efficiency of nodes’ syncing times, per Input Output Hong Kong (IOHK), the developing force behind Cardano. The developers claim that it’s nearing mainnet launch “soon.»
Can It Boost Price?
According to past evidence, upgrades rarely boost token prices significantly as Cardano followed its roadmap and ADA mostly reacted to overall climate of crypto market instead. Thus, if history is indicative of future performance, Mithril upgrade may not cause significant pump for ADA price in August.
On-Chain Analysis
Meanwhile, according to on-chain analysis , some bullish signs are present – if they remain consistent until launch day it could lead to an increase in buying pressure around ADA when its mainnet launches later this year or early next year.