The cryptocurrency Kaspa is experiencing a significant decline, yet major holders continue to actively accumulate their assets, which may influence the market's future.
Price Drop of KAS and Active Purchases by Major Holders
The price of KAS has fallen by 65% since its peak in August 2024. Despite this, the top 10% of wallets have been steadily increasing their KAS holdings. Recently, the Kaspa Report on X revealed that these wallets have accumulated KAS over the past three months irrespective of price movements.
Accumulation Strategy and Its Market Impact
One possible reason for this activity is the dollar-cost averaging strategy, where investors regularly buy cryptocurrency regardless of price fluctuations. Some holders may have shifted their mindset to think in KAS instead of fiat, indicating strong confidence in Kaspa's future.
Long-term Prospects for Kaspa
The accumulation strategy of major holders could create scarcity of KAS in the market if overall interest in the cryptocurrency increases. This could lead to price growth as major holders accumulate assets. Analysts view Kaspa as having the potential to transform the financial system, suggesting that the cryptocurrency has a greater potential than merely being another digital coin.
The behavior of major holders of Kaspa indicates strong confidence in the future of this cryptocurrency, which could act as a catalyst for price growth in the long term.
