The crypto market has been on a road to recovery, but the sad truth remains that a significant number of Cardano holders are still facing losses. This fact has sparked various speculations as to why Cardano, also known as ADA, is the worst performer in terms of profitability among the top 10 largest cryptocurrencies by market cap. Data from IntoTheBlock paints a bleak picture, showing that the majority of Cardano investors are still underwater on their investments even after the market crash of 2022. The disappointment among long-term believers is palpable as the ADA price struggles to follow the market trend, facing resistance levels at $0.6 and $0.7.
According to IntoTheBlock data, only 25% of all Cardano owners are currently seeing any profit, highlighting the dire situation. On the flip side, a whopping 66% are currently facing losses, while the remaining 9% are at a breakeven point. With approximately 4.5 million Cardano holders in existence, it is disheartening to note that only 1.11 million holders are in the green. On the contrary, 2.96 million addresses are currently sitting at losses, with 397,740 addresses at a breakeven state. The looming threat of another 138,000 addresses plunging into losses if the price falls below $0.35 further widens the profitability gap. However, a silver lining exists – if the ADA price surpasses $0.47, approximately 85,590 addresses could bounce back into profit.
To contextualize Cardano’s poor performance in terms of profitability, it is essential to compare it with other leading cryptocurrencies. Bitcoin, the largest cryptocurrency, boasts 89% of holders in profit, with only 7% facing losses and 5% at breakeven. Ethereum, the second-largest crypto, exhibits a similar trend with 82% in profit, 12% in losses, and 5% at breakeven. Even Dogecoin, known for its volatility, sees 75% of all wallets in profit, with 23% at losses and 3% at breakeven. This comparison underscores how Cardano lags behind its counterparts in terms of investor profitability.
As Cardano continues to grapple with its profitability woes, the outlook remains uncertain. If the ADA price fails to gain momentum, the profitability gap could widen further, dragging more investors into the red. At the time of writing, the ADA price stands at $0.42, reflecting a 4.4% decline in the last day. Despite this short-term setback, the weekly chart shows a 5.29% gain, indicating a recent recovery. The coming days will be crucial in determining whether Cardano can bridge the profitability gap and regain the confidence of disillusioned investors.
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