Despite the crypto market recovery, a significant number of Cardano holders are still facing losses, highlighting the challenges faced by ADA compared to other top cryptocurrencies.
Points
- Cardano holders still facing losses despite market recovery.
- ADA is the worst performer in profitability among top 10 cryptocurrencies.
- Only 25% of Cardano holders are in profit.
- Comparatively low profitability against Bitcoin, Ethereum, and Dogecoin.
- Potential future scenarios for ADA price and investor profitability.
Despite the crypto market recovery, a large number of Cardano holders are still nursing losses, leading to speculations as to why this is the case. Data from IntoTheBlock shows that the altcoin is the worst performer in terms of profitability when it comes to the top 10 largest cryptocurrencies by market cap, disappointing holders and long-term believers.
Cardano Profitability Sits At Only 25%
The Cardano profitability has remained low since the market crash of 2022, and even with the market recovery, the majority of investors are still underwater on their investments. This comes as the ADA price has failed to follow the market trend, beaten down at major resistances such as $0.6 and $0.7. Currently, IntoTheBlock data shows that only 25% of all Cardano owners are seeing any profit. On the flip side, the vast majority of 66% are currently out of the money, meaning they are in losses. The remaining 9% are sitting at neutral, meaning they are currently at breakeven as the current price is the same as the price the coins were last moved at.
With around 4.5 million Cardano holders, this means that only 1.11 million holders are seeing any kind of profit on their holdings. 2.96 million addresses are currently sitting at losses and 397,740 addresses are those sitting at breakeven. From here, if the price were to fall below $0.35 again, another 138,000 addresses will be plunged into losses, further widening the profitability gap. However, if the ADA price successfully moves above $0.47, it will send a further 85,590 addresses back into profit.
Comparing The Profitability Of Top Cryptocurrencies
To show how far behind Cardano is in terms of profitability, we put it up against other top cryptocurrencies for comparison. The largest cryptocurrency in the space, Bitcoin, is currently seeing 89% of all holders in profit with only 7% seeing losses and 5% at breakeven. Ethereum, the second-largest cryptocurrency, is seeing 82% of its holders in profit, 12% in losses, and 5% at breakeven. For Dogecoin, the number is also high, with 75% of all wallets in profit, 23% seeing losses, and 3% at breakeven.
This comparison shows just how badly Cardano is performing compared to its fellow large-cap cryptocurrencies. If the ADA price continues to struggle, the profitability gap could continue to widen from this point, plunging even more Cardano investors into the red. At the time of writing, the ADA price is trending at $0.42, with a 4.4% decline in the last day. However, on the weekly chart, it is holding 5.29% gains after a recovery last week.
解説
- The low profitability of Cardano （ADA） compared to other top cryptocurrencies highlights the challenges faced by ADA holders. The significant number of investors currently in losses indicates a need for strategic planning and patience in navigating the market.
- Understanding the profitability metrics of various cryptocurrencies can provide valuable insights into market trends and investor sentiment. Comparing ADA with Bitcoin, Ethereum, and Dogecoin reveals the relative underperformance of Cardano and the difficulties in achieving sustained price increases.
- The data from IntoTheBlock underscores the importance of key resistance levels in determining profitability. For Cardano, breaking through these levels is crucial to improving investor sentiment and reducing the number of holders in losses.
- The potential scenarios for ADA’s price movements indicate that both short-term and long-term strategies are needed. Investors should monitor market conditions closely and be prepared for fluctuations that could impact profitability.
- Overall, the current state of Cardano’s
profitability serves as a reminder of the volatility and challenges in the cryptocurrency market. Investors must remain informed and flexible, adapting their strategies to the evolving market landscape to maximize their potential returns.