Cardano Holders Facing Ominous Losses, Analysis Finds

Diving into the profitability landscape of layer-1 networks, a recent analysis by IntoTheBlock uncovers a concerning trend: a substantial number of Cardano (ADA) holders are experiencing losses, with only 35% currently in profit. Notably, this profitability gap widens when delving into the distribution of ADA addresses, revealing significant losses among holders who purchased tokens at higher prices.

Cardano Holders Face Troubling Losses, Analysis Reveals

A recent investigation by data analytics firm IntoTheBlock has unearthed an alarming trend in the Cardano (ADA) ecosystem: an overwhelming majority of ADA holders are currently underwater. This analysis, which delves into the profitability of holders across several layer-1 networks, has exposed a stark contrast in the fortunes of different cryptocurrencies.

While Bitcoin emerges as the unchallenged leader, with a high percentage of holders enjoying profits, Cardano stands out as a glaring exception. Only a meager 35% of Cardano holders are currently in the green, a figure that starkly contrasts with the profitability observed among holders of other major cryptocurrencies such as TRX, Dogecoin (DOGE), and Ethereum (ETH).

Delving into the data, it becomes evident that the profitability of ADA addresses is under severe strain. Among the 1.59 million addresses holding 14.07 billion ADA, a substantial portion - 5.71 billion ADA - were purchased at prices ranging from $0.000006 to $0.299162 per token.

Conversely, a staggering 2.73 million addresses are experiencing losses, collectively holding 20.07 billion ADA. These losses stem primarily from purchases made between $0.5975 and $0.7265 per ADA.

Currently, 152,940 addresses are at the break-even point, holding a total of 947.87 million ADA. This intricate web of data paints a complex picture. On the one hand, the mounting losses incurred by Cardano holders exert significant downward pressure on the cryptocurrency's price.

However, on the other hand, it suggests a potential undervaluation in the market. This undervaluation implies that a substantial revaluation could be on the horizon should positive developments unexpectedly emerge.

The findings of IntoTheBlock's analysis underscore the importance of considering the profitability of holders when evaluating the health of a cryptocurrency ecosystem. In the case of Cardano, it appears that a large number of holders are currently experiencing significant financial losses. While this may weigh heavily on the price of ADA, it could also present an opportunity for investors to acquire the cryptocurrency at a potentially undervalued price.