Cardano’s price rises after upgrade – what comes next for the project?

Cardano (ADA), the seventh-largest cryptocurrency by market cap, is a very divisive cryptocurrency. In 2022, the token lost over 80% of its value; however, 2023 has seen it recover over 40% of that value. Currently, it is still far off from its all-time high of $3.10, seen in September 2021.   

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Illustration: Milica Mijajlovic

It again claimed the limelight from other cryptos during Valentine’s day, when the project received an official update, dubbed the “Valentine” update. With this, the people behind the project are hoping for more cross-chain interoperability, more trading volume, and stable prices for their token.  

But will this be the case, and what do these changes bring? Read on to find out!   

What is Cardano (ADA)? 

For those just starting out in the world of crypto, here is a quick overview of what Cardano actually is.  

Cardano is a proof-of-stake blockchain that shares its name with its native token ADA. It was started by Charles Hoskinson, co-founder of Ethereum, in 2015. It was done so through the Cardano Foundation, which states its goal is to give visionaries a platform that will allow them to create a better world.   

Initially, Cardano was created to rival and be more efficient than proof-of-work blockchains such as Bitcoin. Compared to them, Cardano is faster, cheaper, more scalable, and has higher interoperability. Any and all changes to Cardano’s development roadmap are reviewed by team members and are research-based, ensuring that the project has solid long-term prospects.  

Now let’s dig into the Valentine update! 

Valentine update 

During the week of February 17, Cardano’s project team released Valentine’s upgrade to their blockchain project. Among the main goals was to make it easier for developers to build cross-chain applications on the Cardano blockchain. Additional support and functions were added to Plutus, Cardano’s smart contract platform, to make it easier for developers to work with other blockchains.  

A code maintainer and developer of Cardano tweeted out his thoughts on the importance of this update.  

“Interoperability is key for blockchain growth. As more dApps are built on Cardano, it is essential that they are not siloed to just one ecosystem, enabling users to interact with different blockchains and access a wider range of services.”  

These so-called cross-chain bridges are software applications enabling transactions across various blockchains. This is important since it will allow other blockchain users to interact with the financial services offered by Cardano dApps.  

dApps rely on smart contracts instead of intermediaries for financial services (lending, borrowing) and are rewarded in the native token as a result of these activities. Finally, this could lead to increased activity on the Cardano blockchain and improve the utility of the ADA token, thus increasing the price.    


Cardano became the talk of the town also thanks to the Djed release, the network’s stablecoin. Perhaps this was one of the main reasons why the price recovered so much in 2023. Djed is an algorithmic stablecoin, meaning that it will be backed by an on-chain algorithm that facilitates the supply and demand between Djed and cryptocurrencies that will prop it up. This is in contrast to stablecoins, which are over-collateralized by fiat reserves.   

Furthermore, Djed will employ a rigorous verification procedure, indicating that it can be verified quantitatively. Cardano developers shared information through various channels that users which stake ADA to get Djed will get additional benefits. While it is still unclear which benefits specifically, we can speculate that staking ADA to get Djed will offer higher yields.  

It is interesting to note that over the past year, 22,000 new staking addresses have been added to the Cardano network each month. Similarly, since the implosion of FTX, Cardano has seen a 300% growth in its smart contracts. These numbers showed the level of interest in the community for Cardano and it’s new stablecoin. But what other technical indicators are there? 

Technical indicators and price action 

Important updates surrounding ADA from last year to Valentine’s update and announcement of Djed give ADA strong fundamentals. Along with the fundamentals, the technical indicators are also showing that ADA’s price may keep going up. At the time of writing, the price action is above the 50-day and 200-day Simple Moving Averages, indicators showing that price action is higher than the average price seen during the two time periods.  

Of course, the price action of ADA, like almost any other token, will depend on what Bitcoin (BTC) does as well as how hard the Federal Reserve (Fed) pushed the US economy.  


ADA price and moving averages. Source: Santiment 

Where is it going? ChatGPT has the answer  

Thanks to Cardano’s long-term, scientifically directed development, it can become one of the most technologically advanced blockchain projects in the crypto ecosystem. Similarly, the majority of analysts have positive views on Cardano and its future, but buying it must be done prudently. The price action is still erratic; therefore, buying it once the price action stabilizes makes a lot of sense for those looking to reap the benefits of the project long-term.  

With the growing popularity of text-based artificial intelligence (AI), as witnessed by the immense rise of Chat GPT, we asked the AI chatbot where Cardano (ADA) is headed as a project. While the AI acknowledged the difficulty in predicting the future, especially in the crypto world, it did offer a reasonable description of where Cardano (ADA) might be headed as a project.  

“<…> Additionally, Cardano is also focused on expanding its ecosystem and partnerships, particularly in emerging markets such as Africa. The platform has already established several partnerships with African governments and organizations, with a goal to promote financial inclusion and access to decentralized finance (DeFi) solutions. 

In summary, Cardano is actively working towards improving its network and expanding its reach, which could lead to increased adoption and use of the ADA token. However, as with any cryptocurrency, the future of Cardano will be influenced by a range of factors, including market trends, technological developments, and regulatory changes.”  


Since the start of the year, the locked value of tokens on Cardano-based dApps jumped 100%, reaching over $120 million at the time of writing. This clearly indicates a rise in interest in Cardano and its token. The fact that Cardano is still following the scientific way of improving the project and network, as well as peer review and consensus, ensures that focus is placed on things that will add value to the entire ecosystem.  

This was clear with Valentine’s update, which increased the number of use cases ADA might have, which in turn may increase its price. All technical indicators and data show an increase in demand and transactions on the network during 2023. However, it is important to note that the entire crypto market has seen a slight recovery and an increase in activity. It’s not just Cardano-specific.  

When it comes to technical challenges ADA will face in terms of price action, the 200-day Moving Average shows $0.38, meaning that the price is in the midst of pushing through a resistance area between $0.39 to $0.44. If it does so, and the rally in crypto continues, it could reach the highs seen in 2022 of $0.65.  

Note that investing in cryptocurrencies is risky, and you should do your own research before committing money to any project.  

Dino Kurbegović is a project coordinator and an investor and technology enthusiast with years of experience in managing complex projects. His journey into content writing began in 2014, covering finance, investing, crypto, technology and complex technical topics.