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The upcoming Vasil hard fork is expected to trigger gains for the network’s native token, ADA. The Vasil hard fork is expected to transform the Ethereum network by making it more scalable by improving its smart contract. A report by Messari has now alleged that Cardano is overpriced because of this upgrade.
Messari says Cardano is aggressively priced
A recent report by Messari, an on-chain analytics platform, said that Cardano was “priced more aggressively” than other growing networks. It attributed this to the Vasil hard fork upgrade, saying that the market was expecting significant gains with this upgrade.
The number of daily transactions on the Cardano network is significantly less than other blockchain networks like Algorand, NEO, Solana, and Tezos. On the other hand, Cardano is reported as the most active user multiple, transaction multiple, and TVL multiple.
According to Messari, assessing these figures to determine Cardano’s value shows that Cardano is overvalued ahead of the Vasil hard fork. However, the Cardano community does not believe this to be the case, with one Twitter user saying that the Messari report was flawed.
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The Twitter user known as ADA Whale said that using figures like the TVL and revenue was a flawed method used on other networks like Ethereum. The user added that using these “traditional multiples” to analyze assets despite their inaccurate and flawed nature showed that people failed to understand what drove the value of crypto assets.
The Vasil hard fork upgrade
The Cardano development team has delayed the Vasil hard fork upgrade multiple times. The delays have caused agitation across the crypto community, but the network developers have said they will not rush the process.
The Technical Manager of Input Output Global, Kevin Hammon, revealed that the team was working on fixing and testing the upgrade to ensure the implementation would go smoothly.
On the other hand, the CEO of IOG, Charles Hoskinson, has confirmed that he does not anticipate any more delays to the upgrade. However, a solid timeline is yet to be shared, but it could be implemented in the coming weeks. Despite these details, several ADA holders are still optimistic. The medium-sized investors of the token have invested an additional $80 million in the token within the past month. Small ADA holders have also continued accumulating the token.
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