Crypto Market Rebounds From Lows, But Why Are Cardano Holders Suffering Losses?

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As a long-term Cardano investor, I’ve seen my fair share of ups and downs in the market. The current market recovery has brought some hope back into the crypto community, but for many Cardano holders, including myself, the losses are still fresh in our minds. The data showing that only 15% of all Cardano investors are currently seeing profits while the majority are still underwater is disheartening.

Despite the crypto market’s upturn, many Cardano investors continue to endure losses, fueling curiosity as to the reason behind this trend. According to IntoTheBlock’s data, Cardano ranks last in profitability among the top 10 digital currencies by market capitalization, leaving disenchanted holders and ardent supporters feeling let down.

Cardano Profitability Sits At Only 15%

Since the market downturn in 2022, Cardano’s profitability has remained disappointing for most investors. Despite the market rebound, many are still facing losses on their investments. The ADA token price has not kept pace with the broader market recovery and has been held back at significant resistance levels, specifically $0.6 and $0.7.

At present, according to IntoTheBlock’s data analysis, approximately 25% of Cardano holders have experienced gains on their investments. Conversely, around 66% of Cardano owners find themselves in a less favorable position, as they are currently facing losses. The remaining 9% remain unchanged, as the current price aligns with the price at which their coins were last transferred.

Approximately 4.5 million individuals own Cardano, but just over 1.1 million of these holders are experiencing gains on their investments. Conversely, approximately 2.96 million addresses indicate a loss, while around 397,740 addresses signify no change or breakeven status.

Should the price of ADA dip below $0.35 once more, approximately 138,000 additional addresses would be pushed into the red, intensifying the profit disparity. Conversely, if the ADA price manages to surpass $0.47, around 85,590 addresses will be rescued from losses and restored to profitability.

Comparing The Profitability Of Top Cryptocurrencies

To illustrate the disparity in profitability between Cardano and leading cryptocurrencies, we present a side-by-side analysis. For instance, Bitcoin, the market frontrunner, currently boasts an impressive 89% of its holders realizing gains, while a mere 7% are experiencing losses and another 5% are at the breakeven point.

Among the second-largest cryptocurrencies, Ethereum, approximately 82% of its investors are currently enjoying profits. On the other hand, around 12% have incurred losses, while the remaining 5% find themselves at a break-even point. Similar trends can be observed for Dogecoin, with about 75% of all wallets reporting gains, 23% suffering losses, and the remaining 3% neither making nor losing any value.

As a Cardano investor, I’ve noticed with concern how poorly my investment has been doing compared to other large-cap cryptocurrencies. The price of ADA seems to be lagging behind, and if this trend continues, the profitability gap between Cardano and its competitors may grow even wider. This could potentially lead to more red figures for Cardano investors like myself.

Currently, the cost of ADA is hovering around $0.42, marking a 4.4% decrease over the past 24 hours. Conversely, the cryptocurrency has registered a weekly growth of 5.29%, following its rebound during the previous seven days.

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2024-07-20 06:40