Cardano's network underwent a significant upgrade this weekend with the launch of the Van Rossem hard fork, marking a milestone as the first protocol version fully approved through onchain governance. Despite this advancement, the ADA token remains subdued, trading at $0.165 and unable to break above key moving averages.
Details of the Van Rossem Hard Fork Activation
The upgrade, which shifted Cardano's mainnet from Protocol Version 10 to Version 11, took place during the transition from epoch 643 to 644. It introduces new features to the Plutus smart contract platform aimed at reducing execution costs and improving efficiency.
Input Output, the company behind Cardano's development, highlighted in their weekly report that besides cost-model enhancements, this update prepares the network for the upcoming Dijkstra era and the introduction of Ouroboros Leios, a major scaling solution expected later in 2026.
Market Reaction and Trader Sentiment
Although the upgrade is a technical success, ADA's market performance shows little change. The price is positioned below its 50-day, 100-day, and 200-day exponential moving averages, all clustered between $0.180 and $0.270, indicating downward pressure.
Data from Coinglass reveals a slight positive funding rate of 0.0061% as of Monday, signaling long traders currently pay short traders, which normally would suggest improved optimism. However, the long-to-short ratio for ADA stands at 0.90, reflecting a majority of traders anticipating a price decline rather than a rise.
The indicators point to cautious market behavior even as protocol upgrades roll out.
Looking Ahead: Foundations for Ouroboros Leios
The Van Rossem fork is a foundational step toward deploying Ouroboros Leios, a scaling protocol designed to increase transaction throughput without sacrificing network security. Expected by the end of 2026, this future upgrade aims to boost Cardano's throughput on its proof-of-stake chain.
This upcoming change could reshape Cardano's technical landscape significantly, although the near-term price impact remains muted.
This material is for informational purposes and does not constitute financial advice.
