<p>Cardano (ADA) is currently the eighth largest cryptocurrency by market capitalization, any news relating to this network might catch great attention from market participants. On September 22nd, 2022, the Vasil hard fork upgrade was successfully accessible on the Cardano network. The upgrade is expected to enhance the network’s performance and empower the productive generation of dApps with its native smart contract programming language.</p><p>After a week of launching, how Vasil hard fork practically works is what most market participants pay attention to. Let’s find out how practical is the upgrade and the market reaction accordingly after its successful implementation on <a href="https://www.builder.news/" alt="Builder.news" title="Builder.news" target="_blank" rel="" class="">Builder.news</a>.</p><blockquote class=""><p><strong>MAIN TAKEAWAY:</strong></p><ul><li><p>$ADA price does not react positively to the upgrade despite huge interests from community.</p></li></ul><ul><li><p>Transaction fees are not saved as much.</p></li><li><p>Cardano is said to receive $200 million from Emurgo.</p></li></ul></blockquote><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed409ec33d58e7a8e6023f659fee92.jpg" alt="one week after Vasil upgrade" title="How market reacts to Vasil upgrade" width="600" height="334"></p><h2>What is Cardano's Vasil upgrade?</h2><p>As blockchain is a chain of data blocks that serves as a digital ledger, each new block becomes genuine only after its predecessor has been verified by the network validators. When a permanent divergence from the most recent version of a blockchain appears, it performs as a hard fork. In other words, this results in the blockchain being split into two distinct networks that operate independently of one another since some nodes can no longer reach a consensus. That somehow explains the main purpose of the <a href="https://www.builder.news/crypto-insights/cardano-vasil-hard-fork" alt="vasil hard fork" title="Vasil Hard Fork - Might Cardano surpass Ethereum with the new upgrade?" target="_blank" rel="" class="">Vasil hard fork upgrade from Cardano</a>. In short, Vasil hard fork is expected to increase the Cardano network's performance, including improving scalability, saving more transaction fees, and fastening transaction speed.&nbsp;</p><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed409ec33d645aa8e6023f659fee92.jpg" alt="Cardano  Vasil upgrade" title="Cardano  Vasil upgrade" width="600" height="333"></p><h2>How Vasil upgrade benefits us, actually?</h2><p>As we are told by Cardano that the Vasil upgrade would show tremendous improvement on the network ranging from transaction fees and speed to dApps scalability. Let’s find out how exactly the upgrade is performing.</p><p>Vasil hard fork is usually mentioned with transaction fee-saving method. Transactions on the Cardano network will be downsized which directly affects transaction fees. The current average transaction fee on the Cardano network after the upgrade is $0.15, which is a little bit lower than that in the previous time (between $0.17-0.18). Therefore, the change in transaction fees seems <strong>not too impressive</strong>, not to mention that in the previous months, the recorded transaction fees were&nbsp;<strong>sometimes marked at $0.15</strong> as the one users experience today.</p><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed40a77f5bd029a8e6023f659fee92.jpg" alt="ADA average transaction fees" title="ADA average transaction fees" width="600" height="414" class="lykafe2"></p><p class="prosemirror-p-center"><em>Source: messari.io</em></p><p>Besides, Vasil hard fork upgrade will make it possible for developers to store and refer to data without using output. This will enhance transaction throughput and boost Cardano’s concurrency. Additionally, it will substantially speed up the transactions. At this moment, transactions take about <strong>20 seconds</strong> to complete.</p><p>It is anticipated that the upgrade will address the concurrent issue that has significantly hampered the ability of Cardano's decentralized applications to scale. According to <a href="https://www.builder.news/crypto-insights/cardano-blockchain" alt="cardano crypto" title="Cardano - What is inside the 3rd generation blockchain protocol?" target="_blank" rel="" class="">Cardano</a>, its platform currently supports 1,075 dApps, which is quite impressive to the former version.</p><h2>Market reactions to the upgrade</h2><h3>More welcome from the community</h3><p>Despite the fact that communities seem to be quiet and await crypto spring to come, Cardano gathers more interest with its Vasil upgrade. According to LunarCrush analytics, a platform that collects social and market activity from cryptocurrencies, Cardano social mentions and engagement statistics showed a significant increase on the day of implementation after a long period of being “lowkey”. Investors tend to continue their interest in Cardano and its upgrade on the following day, helping the social activities remain higher than the previous period in spite of the huge plunge since 23rd September.</p><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed409ec33d6d3ca8e6023f659fee92.jpg" alt="Cardano social activity post Vasil upgrade" title="Cardano social activity post Vasil upgrade" width="600" height="262"></p><p class="prosemirror-p-center"><em>Source: lunarcrush</em></p><h3>Great interest from Emurgo</h3><p>Upgrading to Vasil hard fork means a lot not only to users but also to the network itself. Under the framework of TOKEN2049 taking place in Singapore recently, Emurgo is committed to investing more than $200 million to support Cardano's ecosystem development over the next three years. Emurgo is a company providing blockchain solutions and commercial branch for Cardano that helps the protocol develop products, services, and network applications.</p><iframe width="550" height="400" src="data:text/html;charset=utf-8,%3Cblockquote%20class%3D%22twitter-tweet%22%3E%3Cp%20lang%3D%22en%22%20dir%3D%22ltr%22%3EThe%20%3Ca%20href%3D%22https%3A//twitter.com/hashtag/CardanoCommunity%3Fsrc%3Dhash%26amp%3Bref_src%3Dtwsrc%255Etfw%22%3E%23CardanoCommunity%3C/a%3E%20is%20vibrant%20at%20the%20%3Ca%20href%3D%22https%3A//twitter.com/hashtag/TOKEN2049%3Fsrc%3Dhash%26amp%3Bref_src%3Dtwsrc%255Etfw%22%3E%23TOKEN2049%3C/a%3E.%20Conversations%20about%20how%20to%20create%20real%20impact%20through%20development%20and%20progress%20have%20been%20present%20at%20the%20%3Ca%20href%3D%22https%3A//twitter.com/hashtag/TOKEN2049Day1%3Fsrc%3Dhash%26amp%3Bref_src%3Dtwsrc%255Etfw%22%3E%23TOKEN2049Day1%3C/a%3E.%20%3Ca%20href%3D%22https%3A//t.co/uuVxjsFF1T%22%3Epic.twitter.com/uuVxjsFF1T%3C/a%3E%3C/p%3E%26mdash%3B%20EMURGO%20%28@emurgo_io%29%20%3Ca%20href%3D%22https%3A//twitter.com/emurgo_io/status/1575043633807433728%3Fref_src%3Dtwsrc%255Etfw%22%3ESeptember%2028%2C%202022%3C/a%3E%3C/blockquote%3E%0A%3Cscript%20async%20src%3D%22https%3A//platform.twitter.com/widgets.js%22%20charset%3D%22utf-8%22%3E%3C/script%3E%0A"></iframe><h3><br>$ADA price barely reacted</h3><p>Vasil is a significant blockchain upgrade intended to boost network performance, lower transaction fees, and overall advance Cardano, the ADA price trend continues to be negative. In the early hours following the update's release, the price of Cardano did initially increase by more than 8%, but it later gave up part of the surge and fell to a stable price level of around $0.45 and the declining resistance line has been followed by the downward movement. Currently, the ADA price starts at around $0.43.</p><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed40a77f5bd5daa8e6023f659fee92.jpg" alt="ADA/USDT price" title="ADA/USDT price" width="600" height="421" class="lykafe4"></p><h2>Closing thought</h2><p>Besides The Merge from Ethereum, Vasil hard fork is long awaited by users. After experiencing multiple difficulties, Cardano has made the dream of the upgrade come true with initial success. However, when comparing statistics weeks before the most important event for the network, there’s a tendency for disappointment. Although it is said to save transaction costs, the actual fees aren’t too much saved afterward. Moreover, the $ADA prices do not react positively to the upgrade. There might be reasons for this, however, it is too early to draw a conclusion. Cardano still needs more time to prove to the world that the hard fork is still optimal for their network as was said in the beginning.</p><div class="pr-block-special"><strong>Disclaimer:</strong><br>This article is intended for and only to be used for reference purposes only. No such information provided constitutes advice or a recommendation that any investment or trading strategy is suitable for any specific name.</div>

Check out how the market reacts after a week of implementing Vasil upgrade on the Cardano network.

How market reacts to Cardano's Vasil upgrade?