ADA Struggles to Bounce After Van Rossem Hard Fork

Cardano's ADA token has struggled to gain momentum after the successful activation of the Van Rossem hard fork, one of its most significant protocol upgrades. Despite introducing lower smart contract execution costs and enhanced Plutus functionality, traders remain cautious, limiting any immediate upside in ADA's price.

The Van Rossem hard fork, which was activated on Saturday, marked the network's first major protocol upgrade to be fully approved and ratified through its on-chain governance system. The update brings several technical improvements, including reduced smart contract execution costs, new capabilities for the Plutus platform, and technical groundwork for Cardano's upcoming Dijkstra era.

However, market reaction has been muted, with ADA trading within a narrow range despite the upgrade's significance. According to Coinglass data, ADA's funding rate turned negative on Friday and stood at -0.0029% on Monday, indicating bearish sentiment in perpetual futures markets.