Crypto Market Bounces Back, But Cardano Holders Face Losses
Despite the recent recovery in the overall crypto market, Cardano holders have experienced significant losses, leaving many wondering why this altcoin remains in a state of struggle. According to data from IntoTheBlock, Cardano is currently the worst-performing cryptocurrency in terms of profitability among the top 10 largest cryptocurrencies by market capitalization, disappointing its holders and long-term believers.
The profitability of Cardano has remained low since the market crash of 2022, and even with the recent market recovery, most investors are still underwater on their investments. This is mainly due to the ADA price’s failure to follow the upward trend of the market, facing resistance at key levels such as $0.6 and $0.7.
Data from IntoTheBlock reveals that only 25% of Cardano owners are currently seeing any profit, while a majority of 66% are experiencing losses. The remaining 9% are at breakeven, where the current price matches the price at which they acquired their coins. With approximately 4.5 million Cardano holders, this means that only around 1.11 million holders are currently in a profitable position, while about 2.96 million are suffering losses and 397,740 are at breakeven.
If the ADA price were to drop below $0.35 again, an additional 138,000 holders would be pushed into losses, further widening the profitability gap. Conversely, if the ADA price manages to surpass $0.47, approximately 85,590 holders would regain profitability.
To put Cardano’s profitability into perspective, it is necessary to compare it to other leading cryptocurrencies. Bitcoin, the largest cryptocurrency, currently has 89% of its holders in profit, with only 7% facing losses and 5% at breakeven. Ethereum, the second-largest cryptocurrency, shows a similar scenario with 82% in profit, 12% in losses, and 5% at breakeven. Dogecoin also exhibits a relatively high percentage of profit, with 75% of wallet holders in profit, 23% seeing losses, and 3% at breakeven.
This comparison emphasizes the significant underperformance of Cardano compared to its peers in terms of profitability. If the ADA price continues to struggle, the profitability gap may continue to widen, resulting in more Cardano investors facing losses.
At the time of writing, the ADA price is at $0.42, experiencing a 4.4% decline in the last day. However, it still maintains a 5.29% gain on the weekly chart following last week’s recovery.