The Cardano Foundation Implements Changes to Staking Parameters
The Cardano Foundation has announced a significant update to its staking parameters, aiming to improve competitiveness and user experience. Following a stake pool operator (SPO) poll and deliberations by the Parameters Committee, the foundation has successfully submitted a transaction on the Cardano mainnet to lower the minPoolCost parameter from 340 to 170 ADA. This change has been met with anticipation and strategy from the Cardano community.
Stake Pool “Stake with Pride” Adapts to New Parameters
One of the Cardano staking pools, “Stake with Pride,” has swiftly adjusted its policies to align with the updated parameters. They have lowered their fees starting epoch 445 on October 27th and have committed to maintaining a minPoolCost of 170 ADA permanently and a temporary margin of 0% while assessing market dynamics.
Aims and Implications of MinPoolCost Parameter
The minPoolCost parameter was introduced with the Shelley launch in 2020. Its objectives were twofold: defending against Sybil attacks and ensuring pool operators have a minimum income to support their server operations. By potentially halving minPoolCost, smaller pool operators are expected to benefit from more favorable market dynamics, creating a level playing field.
Potential Rally for Cardano (ADA) Price
The price of Cardano (ADA) has shown an upward trend in line with the overall crypto market. Currently trading at $0.282, ADA has experienced a 6.5% increase over the past 24 hours. The breakout momentum allowed ADA to surpass the crucial Fibonacci retracement level at $0.277 and establish it as new support.
If ADA can achieve a daily close above the 0.236 Fibonacci retracement level, it may enter a further bullish phase. The next significant resistance is the 200-day exponential moving average (EMA) at $0.299, which could propel ADA back into bullish territory. Potential targets include Fibonacci retracement levels at $0.313, $0.341, $0.370, and $0.411, with the ultimate goal being the annual peak of $0.463, indicating a potential 65% increase from its current value.
It’s worth noting that ADA has underperformed compared to other altcoins this year. While Solana (SOL) and Ether (ETH) are nearing their yearly highs, ADA remains 39% below its peak. The upcoming breach of the 200-day EMA could determine whether ADA gains favor among traders in the future.
Hot Take: ADA’s Potential Growth and Market Dynamics
The recent update to Cardano’s staking parameters signals a commitment to creating a more competitive ecosystem and better user experience. By lowering the minPoolCost parameter, smaller pool operators can thrive in the market and level the playing field. Additionally, the potential rally in ADA’s price indicates an optimistic outlook for investors, with a projected 65% increase from its current value. However, ADA’s underperformance compared to other altcoins suggests that it has yet to gain popularity among traders in 2023. The breach of the 200-day EMA could be a crucial turning point for ADA’s market dynamics and future growth.
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