The Cardano community has spent 70 million dollars to promote network upgrades, with the activity level of ADA development soaring, releasing bullish signals.

The Cardano (ADA) ecosystem has made significant progress. The community overwhelmingly approved (with a 74% support rate) the allocation of 96 million ADA (approximately 70 million USD) to the core development team Input Output Engineering (IOE) for leading key protocol upgrades, including Ouroboros Leios, Hydra, and Mithril. The funds will be distributed in phases according to milestones and will introduce on-chain smart contracts and multiple oversight mechanisms to ensure transparency. Meanwhile, the on-chain development activity of Cardano has strengthened against the market trend, and the technical aspect of the ADA price shows a critical battle for key moving averages, with potential volatility contraction or brewing new breakthroughs.

[70 million dollar milestone grant landed, IOE focuses on three main directions] The results of the Cardano community governance vote have officially been released, with Input Output Engineering (IOE) successfully obtaining authorization for over 96 million ADA (approximately 70 million USD at the time of approval) in funding to execute core network upgrades. This public chain development funding is one of the largest grants in the history of the Cardano treasury, receiving nearly 74% voting support. IOE has clearly stated that the funds will be distributed in phases strictly according to technical milestones, supervised by the ecological governance body Intersect and on-chain smart contracts to ensure development funding transparency and project accountability. The team has committed to regularly releasing progress reports and budget details.

This upgrade will focus on three key areas:

1. Scalability Enhancement: By optimizing the Ouroboros Leios consensus mechanism and the Layer 2 scaling solution Hydra, the network's transaction processing capability (TPS) is significantly improved.
2. Cross-chain Interoperability: Enhance tools like the Mithril protocol to strengthen Cardano's asset cross-chain bridging capabilities with other blockchains.
3. Developer Experience Upgrade: Improve the toolchain, lower the ecological development threshold, and attract more DApp developers to Cardano.

[On-chain development remains active against the trend, builders' confidence is strong] Despite the fact that the ADA price briefly fell below $0.62 in late July, Cardano's on-chain development activity showed a significant surge. The frequency of code submissions and the number of core contributors continued to grow at the end of July, demonstrating developers' strong confidence in the long-term value of the ecosystem. Entering early August, following the official approval of a $70 million allocation and further increases in development activity metrics, the ADA price rebounded to the level of $0.735. This trend of "development leading and price following" is often seen as a positive signal for underlying value growth.

(Source: Santiment)

【ADA Technical Analysis: Key Moving Average Battle, Volatility Contraction Anticipates Trend Change】 As of the time of writing, ADA is trading around $0.7304, experiencing a key moving average battle:

• Support Confirmation: Previously received strong support at $0.69 (near the lower Bollinger Band).
• Moving Average System: The current price is stable above the 200-day Exponential Moving Average (EMA, $0.7067) and is tentatively attempting to break through the resistance of the 50-day EMA ($0.7240).
• Technical Indicators:
  • Although the MACD indicator is still in the bearish zone, the downward momentum is showing signs of weakening, suggesting a potential Bullish Crossover possibility.
  • The Bollinger Bands continue to narrow, indicating that the Volatility Squeeze is nearing its end, and the price may choose a direction to break out.
• Potential Path:
• If ADA successfully stabilizes above the 50-day EMA and breaks through the 0.74 USD level, the next target could look towards 0.79 USD.
  • If the 50-day EMA resistance is not effectively broken, it may retrace to the support area of 0.68 US dollars.
• As long as the key support level remains intact, the short-term price structure maintains a Neutral-Bullish pattern.

Conclusion: The Cardano community has overwhelmingly approved a substantial development funding proposal, marking a new stage in its on-chain governance model. The phased allocation and design of multiple supervision mechanisms provide dual guarantees for efficient use of funds and the building of community trust. The increase in development activity against the market trend and the stabilization of key price moving averages together inject recovery momentum into ADA. If the core protocol upgrades proceed as scheduled and result in a substantial improvement in network performance, Cardano is expected to solidify its technological leadership in the fiercely competitive Layer 1 public blockchain track and provide solid support for the long-term value of ADA. In the short term, whether the key technical resistance is broken will become an important barometer of market sentiment.