Cardano (ADA) Investors Struggle with Profitability
Over the past few years, Cardano (ADA) has become a popular cryptocurrency, ranking among the top 10 largest cryptocurrencies by market cap. However, while the Cardano network has experienced significant growth, investors holding its native ADA token have not been as fortunate in terms of profitability.
Low Profitability Levels for ADA Holders
Data from the on-chain tracking website IntoTheBlock reveals that ADA may be the worst-performing cryptocurrency among the top 10 in terms of profitability. While other assets in the top 10 have maintained reasonable profitability levels for holders during bear markets, ADA has seen a significant decline.
According to IntoTheBlock, currently, 0% of ADA investors are seeing any kind of profit. An alarming 95% of holders are experiencing losses, while 4% remain neutral, meaning their token prices correlate with the current price of ADA.
Comparison with Other Cryptocurrencies
In comparison, Bitcoin has 64% of its holders in profit, while Ethereum has 52%. Dogecoin, which ranks just above Cardano, has 41% of holders in profit.
The majority of ADA holders are mid to long-term traders. Approximately 39% have held their coins for 1-12 months, while 61% have held them for over a year.
Cardano’s Resilience and Investor Confidence
Despite ADA’s low profitability, investors see its current price level as an opportunity for entry. The CoinShares Digital Asset Fund Flows Weekly report shows that Cardano continues to attract institutional investors, with $0.43 million flowing into the asset.
Crypto analysts are also optimistic about ADA’s potential. Some predict that the price of ADA could rise to $5 in the next bull market, citing the altcoin’s attractive price range for accumulation and its strong community support.
Hot Take: Cardano Faces Profitability Challenges but Maintains Investor Confidence
While Cardano’s native token ADA has struggled with profitability, with a significant percentage of holders experiencing losses, investors remain confident in the cryptocurrency’s potential. ADA continues to attract institutional investors and analysts predict a positive future for the altcoin. Despite its current challenges, Cardano remains a promising project in the crypto space.
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