Cardano plans to hand over a $681 million treasury to its community, signifying Cardano's focus on decentralization and community involvement.
This handout also comes alongside the upcoming Chang hard fork on the Cardano network
ADA's price has been down recently and is predicted to drop to $0.38 eventually
According to analyst, Sssebi, there might be a buying opportunity at $0.40 and $0.38, followed by a price rebound.
The Cardano Community is gearing up for one of the biggest bits of news in years.
As it stands, Cardano has just announced plans to hand over a staggering $681 million treasury to its community.
This handout of more than a half billion dollars is set to happen with the much-expected Chang hard fork, ushering in Cardano's “age of Voltaire”, further decentralization to the entire network, as well as a very engaged community.
Here's what this means for the cryptocurrency.
When the announcement went out, Cardano was ranked as the project with the 8th largest treasury in the crypto space, according to data from TapTools.
The Cardano community will now be poised to receive control of this treasury that is valued at more than $681 million.
But why is Cardano’s approach different?
Unlike other blockchain protocols that attempt to diversify their treasuries with stablecoins and other kinds of cryptocurrencies like Bitcoin and Ethereum, Cardano’s treasury holds mainly $ADA tokens.
This treasury was funded through transaction fees and block rewards and exists to push the ecosystem’s development forward.
According to Charles Hoskinson, the co-founder of Cardano, the upcoming Chang hard fork is set to introduce several new changes to Cardano, pushing it further towards decentralization.
According to Hoskinson, after ten years of work on Cardano, this event is not just a major milestone for Cardano, but also a historic event for the entire crypto community at large.
Cardano is in the middle of some of the biggest events in its history, both of which are happening at the same time.
However, according to data from CoinMarketCap, Cardano isn't doing very well in terms of price as shown by the snapshot below:
Cardano’s price action
CoinMarketCap data shows that the cryptocurrency is down by around 2.66% over the last 24 hours before writing and by nearly 7% over the last week.
According to analyst, Sssebi in a recent tweet, the Cardano dump might not be over.
However, more than this, there might be a significant entry opportunity, waiting to present itself.
“As I previously said, the dump wasn't over. $ADA just hit $0.40 and this is an incredible opportunity to load up your bags.
We could still see $0.38 if Bitcoin continues to dump, the best way is to DCA at these prices. Huge bounce incoming once this dump is over.”
According to the analyst, Cardano will likely decline further down to around $0.38.
Keep in mind that the cryptocurrency currently trades at $0.411.
Sssebi argues that investors might want to consider a dollar cost averaging strategy at $0.4 and $0.38—and when this dump is over, Cardano is set to rebound heavily.
Overall, the outlook for ADA would be to wait for a retest of $0.38 before entry.
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