Cardano (ADA) will undergo a major network update called Vazel on September 22, making the blockchain more scalable and cheaper. However, the news failed to trigger any decisive upward momentum in the ADA market.
In detail, according to Cowen Telegraph, the price of (Cardano) has increased by about 3.5% to $0.51 since the announcement of Vaselle's launch, including a 14% increase followed by a near wipeout. In other words, traders initially bought out the fuss but were quick to exit the markets.
Cardano founder Charles Hoskinson blamed macro factors for ADA's poor performance despite Vaselle's euphoria, noting that crypto markets are, in general, disconnected from reality.
Hoskinson added: Cardano has never been stronger, and frankly, many other projects are also strong across the industry, yet you don't see that showing up on the pricing - just a sea of red.
The comments came as riskier assets were subject to another deep slide in the days leading up to the FOMC meeting on September 20 through September 21.
Markets believe that Fed officials will vote to increase benchmark interest rates by another 0.75% on September 21st. Overall, the US central bank is looking to raise the rate to 3.75% to 4% by the end of 2022.
The high price environment could harm Cardano and other higher-cap crypto assets, as it will likely increase the attractiveness of cash-based instruments among investors.
From a technical perspective, Cardano looks set to undergo a small rally in the days leading up to the Vaselle hard split.
