The ADA price decline this year has led some of Cardano’s affluent investors to stockpile the token in anticipation of the Vasil hard fork, which is expected to be completed by the end of July.
Investors in the decentralized finance (DeFi) asset have ceased selling and have started buying during the past 30 days according to the most recent data.
According to information received on July 9 from the blockchain analytics platform Santiment, Cardano whale addresses, or addresses that hold between 10,000 and 100,000 ADA, have started to come alive and have added 79.1 million ($37,894,397) to their aggregate bags over the past month.
While this is going on, Cardano “whales” that contain between 100,000 and 1 million ADA have ceased trading. A larger holding of ADA gives sharks and whales the ability to predict future trends in the token through higher volatility or lower liquidity.
The Cardano sharks’ recent buying binge suggests that they have been preparing for a rapid price rebound, especially given that ADA is currently trading nearly 85% below its record-breaking high of $3.16 set in September 2021.
A significant technical upgrade scheduled for this month’s end, following the successful launch of the testnet on July 4, is another potential positive factor.
The upgrade which is dubbed “Vasil” will be the network’s most significant update since the Alonzo hard fork in September 2021, which enabled Cardano smart contracts and a flurry of new DeFi use cases.
The Vasil upgrade is both Cardano’s biggest and best improvement yet and their most difficult undertaking to date according to IOHK. They emphasized once more that maintaining the security and safety of this upgrade is their top concern.