Punishing Losses for Digitalย currency Holders in Bear Market
Holders of most digitalย currencies are facing losses in the ongoing bear market that began in the first half of 2022. Nonetheless, 3 layer-1 blockchain tokens are suffering the most between the top 20 digitalย currencies by market cap. According to data from IntoTheBlock, over 93% of Cardanoย (ADA), Polygon (MATIC), and Avalancheย (AVAX) holders are asย ofย now at a loss. Their average acquisition cost is higher than theย present price of each digital asset.
Interestingly, only 32% of the total supply is held by addresses with over 0.1% of the circulating supply. Inย addition, the bulkย of holders (60%) are long-term investors who have held their tokens for over a year.
Polygon (MATIC) Holders Struggling
Polygon, which atย theย beginning started as a layer-2 blockchain for Ethereumย (ETH), has its own ecologicalย system now. Nonetheless, MATIC holders are experiencing the Second worst holding performance between the 3 mentioned projects. A staggering 95% of MATIC holders are asย ofย now in the red, with none in the green. Only 5% of investors are at a breakeven position.
On the other hand, Avalancheย (AVAX) has a slightly better distribution between large holders, with 78% holding at least 0.1% of the supply. As a newer layer-1 blockchain, the bulkย of Avalancheย (AVAX) holders (69%) have held their tokens for less than a year.
Hot Take
The extended bear market has taken its toll on digitalย currency holders, with Cardanoย (ADA), Polygon, and Avalancheย (AVAX) being hit the hardest. Althoughย while the bulkย of holders are at a loss, itโs worth keepingย inย mindย that some long-term investors have remained confident in these projects. As the market continuesย to evolve, it will be interesting to see if these tokens can recover and reward their loyal supporters.
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