Despite the recent recovery in the crypto market, Cardano holders are facing significant challenges with many still nursing losses. This has raised concerns and speculations surrounding the reasons behind this poor performance. Data from IntoTheBlock highlights the fact that Cardano is the worst-performing altcoin in terms of profitability among the top 10 largest cryptocurrencies by market cap. This has disappointed holders and long-term believers in the project.
The profitability of Cardano has been on a downward trend since the market crash of 2022. Even with the recent market recovery, a majority of investors are still underwater on their investments. The ADA price has failed to follow the overall market trend and has been struggling to break major resistances at $0.6 and $0.7. According to IntoTheBlock data, only 25% of all Cardano owners are currently in profit. On the other hand, a staggering 66% of holders are facing losses, while the remaining 9% are at breakeven.
With approximately 4.5 million Cardano holders, it is concerning that only 1.11 million are seeing profits on their holdings. This indicates a significant gap in profitability among investors. If the ADA price were to drop below $0.35 again, another 138,000 addresses would be plunged into losses, further widening the profitability gap. On the flip side, a successful move above $0.47 could bring 85,590 addresses back into profit.
To better understand the magnitude of Cardano’s profitability challenges, it is essential to compare it with other top cryptocurrencies. Bitcoin, the largest cryptocurrency, is currently seeing 89% of all holders in profit, with only 7% facing losses and 5% at breakeven. Similarly, Ethereum and Dogecoin also have a higher percentage of profitable holders compared to Cardano. This comparison underscores the significant underperformance of Cardano in terms of profitability.
If the ADA price continues to struggle and fails to break key resistances, the profitability gap for Cardano holders could further widen. This would result in more investors being pushed into losses, painting a grim picture for the altcoin’s holders. At the time of writing, the ADA price is trending at $0.42, with a slight decline in the last day but holding gains for the week. However, the overall challenges in profitability remain a cause for concern for Cardano investors.
The struggles faced by Cardano holders in terms of profitability are evident. The altcoin’s failure to keep up with the market trend and break key resistances has left a significant portion of investors in losses. As the cryptocurrency market continues to evolve, it is essential for Cardano to address these challenges and work towards improving profitability for its holders.
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