Van Rossem Hard Fork Activated on Cardano Network; Is It Time for ADA Price Surge?

The Cardano network successfully activated the Van Rossem hard fork yesterday, upgrading to protocol version 1.11. This significant update aims to increase the speed and reduce the cost of executing smart contracts, improve node security, and enhance the developer experience. The upgrade was implemented without disruption for users and is considered one of the most important updates for this blockchain in recent years by the Cardano community.

According to Mihan Blockchain, however, the main question in the market is different: Can this technical advancement lead to sustainable growth in the price of Cardano, or will it have only a short-term effect on the market like many past upgrades?

What Changes Does the Van Rossem Hard Fork Bring to Cardano?

The Van Rossem hard fork, named in honor of one of Cardano's contributors, Max Van Rossem, is the first major upgrade of this network that was fully approved through the decentralized governance mechanism Voltaire, with over 77% of elected representatives (DReps) and 52% of staking pool operators supporting the implementation of this update.

This upgrade was carried out with only about 10 minutes of downtime in block production and did not cause any disruption to user assets or network performance.

The most important changes in this version directly target smart contract developers. Enhancements include increased execution speed of Plutus scripts, the addition of new built-in functions, updates to the cost model for executing contracts, and strengthened node security, all of which can simplify and reduce the cost of developing and executing decentralized applications.

These changes are expected to pave the way for the growth of the DeFi ecosystem, non-fungible tokens (NFTs), and real-world asset (RWA) projects on the Cardano network.

Jason Appleton, one of Cardano's governance representatives, commented on this upgrade:

"The most important feature of this update is that it was approved through on-chain voting by community representatives before execution; meaning the upgrade was made by community decision, not by a centralized entity."

Alongside this transformation, Input Output has also announced that starting in August, it will delegate the management of parts of Cardano's core infrastructure, including the Plutus platform and Daedalus wallet, to independent companies; a move seen as further decentralizing the ecosystem.

Can This Upgrade Propel ADA Price into an Uptrend?

As the hard fork was executed, the price of ADA reacted positively, increasing by about 1.2% within 24 hours. However, analysts believe the real impact of this update will be evident in the long term.

Experience from previous Cardano hard forks shows that technical upgrades usually generate short-term market excitement, but sustained price growth is only possible if these changes lead to real ecosystem growth.

An increase in the number of developers, the launch of new decentralized applications, growth in total value locked (TVL) in DeFi projects, and the success of future upgrades like Ouroboros Leios are among the factors that could influence the future price of ADA.

On the other hand, the behavior of large investors also shows positive signs. Data indicates that wallets holding between 100,000 to 100 million ADA now possess over 25.6 billion ADA; a figure that represents the highest level since February 2023 and may indicate increased confidence from large investors in the future of this network.

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