Cardano (ADA) has faced a challenging period in terms of profitability for its holders in 2023. Data from the on-chain tracking website IntoTheBlock indicates that ADA has underperformed compared to other cryptocurrencies in the top 10, with a significant drop in profitability for its investors.
Here’s an overview of ADA’s profitability situation:
- Zero Percent Profitability: According to the data, ADA currently has 0% of its holders in profit. This means that all ADA holders who have bought the cryptocurrency at any point are currently seeing losses in terms of the token’s current price.
- 95% Seeing Losses: A substantial 95% of ADA holders are reported to be experiencing losses. This indicates a significant decline in ADA’s market value over the last two years.
- 4% Neutral: Only 4% of ADA holders are in neutral territory, meaning the prices at which they acquired the tokens align with the current market price.
In contrast, other cryptocurrencies in the top 10 have managed to maintain a more reasonable level of profitability for their holders during the bear market. For instance, Bitcoin has 64% of its holders in profit, Ethereum has 52%, and Dogecoin has 41%.
Cardano’s Profitability Drops with 0% of Holders in the Green
Despite the challenging profitability situation, Cardano continues to attract interest from investors. Institutional investors have shown interest in ADA, with a significant inflow of funds into the asset, according to the CoinShares Digital Asset Fund Flows Weekly report.
Additionally, some crypto analysts remain bullish on Cardano’s potential. They cite factors such as the coin’s design and strong community support as reasons for optimism. While ADA’s current profitability situation may be challenging, its long-term prospects continue to attract attention.
Investors should keep in mind that the cryptocurrency market is highly volatile, and profitability can change rapidly.