Cardano's Promise Breaks: Holders Drown as Whales Bolt

Cardano (ADA) holders face significant losses as the network's unrealized loss widens to 15.71%. Despite the price dip, whales are not actively accumulating ADA, raising concerns about demand. Only 35% of ADA holders are in profit, significantly lower than Bitcoin (86%) and Ethereum (81%). ADA's lackluster market performance has contributed to its declining market ranking, with coins like Dogecoin and Toncoin surpassing its valuation.

Cardano's Unfulfilled Promise: Holders Flounder as Whales Abandon Ship

Cardano (ADA), once hailed as a revolutionary blockchain platform, has fallen from grace, leaving its holders nursing substantial losses. According to recent data from on-chain analytics firm IntoTheBlock, a mere 35% of ADA's holders are currently in profit, a stark contrast to the 86% and 81% profitability rates enjoyed by Bitcoin (BTC) and Ethereum (ETH) holders, respectively.

This dismal performance has dragged ADA down the market rankings, with Dogecoin (DOGE) and Toncoin (TON) now surpassing it in valuation. The coin's price has plummeted 28% over the last month and nearly 22% year-to-date, according to CoinMarketCap.

Compounding ADA's woes is its widening average unrealized loss, which has climbed to an alarming 15.71% at the time of writing. This means that on average, ADA holders would lose 15.71% if they were to sell their coins at current prices.

The price decline has also taken a toll on ADA's on-chain activity, with the number of daily active addresses plummeting to 30,000 from a peak of over 70,000.

While depressed prices and low profitability typically present opportunities for accumulation, data suggests that whales are not buying the ADA dip. Santiment's analysis shows a consistent decline in whale holdings over the last 2-3 months, indicating that they are net sellers of ADA.

Despite these bearish indicators, some ADA holders remain optimistic, drawing hope from the coin's previous super cycle, which occurred a year after the 2020 Bitcoin halving. If history repeats itself, ADA could challenge its all-time high (ATH) levels in 2025.

However, investors should proceed with caution, as the current market conditions and whale behavior paint a bleak picture for ADA in the near term. Whether the coin can regain its former glory remains to be seen, but for now, holders are left with unrealized losses and dwindling confidence.