Cardano’s recent surge in staking and a proposed tax change signal a bullish rally for ADA. The staking value of Cardano has reached $8 billion, accompanied by a 31% increase in ADA’s value.
ADA/USD 24-hour price chart (source: CoinStats)
However, there has been a decline in staking recently, possibly due to profit-taking by investors. Despite this, Cardano’s market position remains strong, with $8.16 billion staked and 63% of ADA in circulation being staked.
The price of ADA is trading at around $0.34, with a resistance zone at $0.40. A proposal to reduce the treasury tax from 20% to 5% has gained support from Cardano stakeholders. This change could lower the monthly ADA allocation to the treasury, which currently adds around 30 million ADA.
The proposal also aims to clarify the determinants of the “tau” parameter and its adjustment frequency. If approved, the proposal could incentivize more stake pool operators (SPOs) to join, enhancing network security and robustness. The community eagerly awaits the outcome of the treasury tax proposal, as it could potentially drive increased on-chain activity and boost Cardano’s overall appeal and utility.
Source: Coin Edition
