Why Cardano was trouncing other cryptos this weekend

The new model of what many consider to be a top "Ethereum killer" is about to be unveiled.

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Cardano cryptocurrency coin.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Few people were hot on cryptocurrency investments this sweltering weekend; Cardano (CRYPTO: ADA) was one of the rare exceptions. After its co-creator nailed a concrete date for a major upgrade of the blockchain platform, investors traded it up through the weekend. As of mid-afternoon Sunday, its value had risen by 4% over the preceding 24 hours.

So what

Friday morning, Cardano's co-founder, Charles Hoskinson, announced that that upgrade is going to occur on Thursday, Sept. 22. It will take the form of a hard fork, i.e., a new, separate, and non-backward-compatible blockchain from the original, which is titled Vasil.

The pop in Cardano's value was due in no small part to a cocktail of relief and hope. Vasil's launch was originally scheduled for June and subsequently experienced more delays.

Cardano has attracted much investor interest since its launch in 2017. Hoskinson was a co-founder of Ethereum, currently the leader in decentralized applications (dApps) and smart contracts. Cardano is being developed basically to be a faster and more efficient dApp and smart contract platform.

According to a post on the site of Input Output Global, the so-called "driving force" behind Cardano, Vasil "will bring significant improvements using Cardano's hard fork combinator (HFC) approach and enhance the network's performance by increasing throughput, script efficiency, and reducing latency in block transmission."

Now what

Crypto investors have been starved of good news lately, with negative macroeconomic trends such as inflation favoring assets considered to be relatively safer and less speculative. With its creators' goal of making a low-friction blockchain, perhaps even one that can usurp Ethereum, Cardano is already a compelling crypto play. Fresh news of the impending upgrade is getting investors that much more excited about its prospects.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Eric Volkman has positions in Ethereum. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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