Punishing Losses for Digital currency Holders in Bear Market
Holders of most digital 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 digital currencies by market cap. According to data from IntoTheBlock, over 93% of Cardano (ADA), Polygon (MATIC), and Avalanche (AVAX) holders are as of now at a loss. Their average acquisition cost is higher than the 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. In addition, the bulk of holders (60%) are long-term investors who have held their tokens for over a year.
Polygon (MATIC) Holders Struggling
Polygon, which at the beginning started as a layer-2 blockchain for Ethereum (ETH), has its own ecological system now. Nonetheless, MATIC holders are experiencing the Second worst holding performance between the 3 mentioned projects. A staggering 95% of MATIC holders are as of now in the red, with none in the green. Only 5% of investors are at a breakeven position.
On the other hand, Avalanche (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 bulk of Avalanche (AVAX) holders (69%) have held their tokens for less than a year.
The extended bear market has taken its toll on digital currency holders, with Cardano (ADA), Polygon, and Avalanche (AVAX) being hit the hardest. Although while the bulk of holders are at a loss, it’s worth keeping in mind that some long-term investors have remained confident in these projects. As the market continues to evolve, it will be interesting to see if these tokens can recover and reward their loyal supporters.
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