Why are the Richest Backers of Cardano Accumulating Tokens Right Now?

It seems that many people are now investing in ADA. Recently, the coin hasn’t shown much of an increase in price, but if one looks at on-chain data from Santiment, it shows that there have been a lot of investments lately. The investor group made a large purchase of more than 80 million tokens.

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Why is Investment Being Done in Cardano?

Wealthy investors are accumulating tokens in anticipation of the Vasil hard fork. There are people buying Cardano tokens before the Vasil hardfork.

A lot of small investors known as sharks (with 10,000 to 100,000 tokens) have started investing in ADA. They account for 79 million in the past month with a price of $0.5 for ADA. This is all thanks to Vasil, which was deployed in Cardano’s testnet on June 28th.

Investors with a share of 14.3% in the total ADA supply are signalling they will likely hold onto their tokens. Once the mainnet implementation of Vasil is complete, they will hold onto their investments even longer.

ADA tokens may increase in price if more people in the community are interested in them.

Big holders of ADA, defined as whales (containing 1 Mn to 10 Mn tokens in crypto wallets), are not moving into the markets and have been sitting on the sidelines even though Cardano has seen a major event.

What’s more, this new information is neither bearish nor bullish. This means that the whales that had been selling tokens have also become silent following the distribution from the first few months of the year, in what was known as crypto winter.

What Vasil Hard Fork Has To Do With Cardano?

The Vasil hard fork is expected to trigger a series of planned updates that will improve Cardano’s infrastructure. This will benefit the DeFi projects that are powered by this blockchain. This could increase the number of decentralized applications because developers might prefer to use Cardano due to its cheaper and faster infrastructure.

Despite the Vasil upgrade, the price of ADA has been relatively stagnant. The value has dropped 3.7%, at $0.45 per coin, while the cryptocurrency ecosystem as a whole gained around 2%.

Meanwhile, Cryptocurrencies have been experiencing a significant downturn this year, with a loss of 67.2% so far when compared to the loss that the entire market has experienced.

The Cardano Blockchain is a new project trying to compete with Ethereum to provide a strong foundation for developers. The Vasil hard fork will make it easier for Cardano to compete with Ethereum in areas where it has been lagging behind, like speed, scalability, and cost.

However, the total locked value (TVL) is fairly low for Cardano at $116.8 million; this is compared to Ethereum at $46.8 billion, Binance Smart Chain at $2.6 billion and Solana (SOL) at $1.6 billion.

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Currently, there are a lot of mid-tier investors who are bullish. However, we do not know if the Vasil hard fork will be effective and improve community perception of Cardano’s ability to become the ultimate Ethereum killer. It has made little difference to people’s opinion on its ability to eliminate Ethereum.

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