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Key Takeaways:
- Cardano community approved a $70M IOE grant for major upgrades and transparency-led development.
- Developer activity has surged despite ADA’s recent price dip, signaling strong network confidence.
- ADA is testing key EMAs, with a close above $0.74 potentially leading to a breakout toward $0.79.
Cardano (ADA) is entering a critical growth phase as its community greenlights a $70 million grant to Input Output Engineering (IOE) for executing significant network upgrades. Backed by 74% of voters, the initiative marks one of the largest treasury allocations in Cardano’s history, signaling strong support for long-term development.
$70M Funding to Power Major Cardano Upgrades
The approved grant—over 96 million ADA—will be released in milestone-based phases to ensure accountability and transparency. Oversight will be managed by Intersect and smart contracts, with IOE pledging to provide regular updates and budget disclosures. The development roadmap includes key upgrades like Ouroboros Leios, Hydra, and Mithril, all geared toward enhancing scalability, cross-chain functionality, and developer tooling.
These upgrades are expected to significantly boost Cardano’s competitiveness in the Layer-1 blockchain space, potentially drawing in new users and developers.
Development Activity Surges Amid Price Dip
Despite a recent dip in ADA’s price below $0.62, development activity on the Cardano network has surged, signaling strong builder confidence. Data from late July and early August shows a notable increase in code contributions and active developer engagement—an encouraging sign for long-term adoption and resilience.
ADA has since rebounded to around $0.735, which aligns with renewed investor optimism following the grant approval.
ADA Tests Key Resistance Levels
Technically, ADA is showing signs of recovery. The token found support near $0.69 and now trades above the 200-day EMA ($0.7067), testing the 50-day EMA ($0.7240) as resistance. While the MACD remains in bearish territory, easing momentum suggests a potential bullish crossover.
Also Read: Cardano Approves 96M ADA Treasury Grant to IOG for Major Network Upgrades
Tightening Bollinger Bands indicate a potential volatility breakout. A successful close above $0.74 could pave the way to $0.79, while failure may see ADA revisit $0.68 support.
Cardano’s bold $70 million investment in development comes at a pivotal time. With strong community backing, technical improvements on the horizon, and growing developer participation, ADA is well-positioned for a potential breakout—both technically and fundamentally.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
