Despite the crypto market’s recovery, a significant number of Cardano holders are still suffering losses, leading to speculation as to why. Data from IntoTheBlock shows that the altcoin is the worst performing in terms of profitability when it comes to the top 10 cryptocurrencies by market cap, disappointing its holders and long-term believers.
Cardano’s profitability is only 15%
Cardano’s profitability has remained low since the market crash in 2022 and even as the market recovers, the majority of investors are still in a slump with their investments. This comes at a time when ADA price has failed to follow the market trend, falling at key resistance levels such as $0.6 and $0.7.
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Currently, IntoTheBlock data Offers Only 25% of all Cardano holders are making any profit. On the other hand, the vast majority of 66% are currently out of the money, meaning they are in losses. The remaining 9% are neutral, meaning they are currently at breakeven as the current price is the same as the price at which the coins were last transferred.
With around 4.5 million Cardano holders, this means that only 1.11 million holders are seeing any kind of profit on their holdings. There are currently 2.96 million addresses experiencing losses and 397,740 addresses at breakeven.
Hence, if the price drops below $0.35 again, another 138,000 addresses will lose money, further widening the profitability gap. However, if the ADA price successfully moves above $0.47, 85,590 addresses will be back in profit.
Comparing the profitability of the best cryptocurrencies
To show how far Cardano is lagging in terms of profitability, we compared it to other leading cryptocurrencies for comparison. The largest cryptocurrency in the space, Bitcoin, currently sees 89% of all holders making a profit, while only 7% are losing and 5% are at breakeven.
Ethereum, the second largest cryptocurrency, saw 82% of its holders make a profit, 12% lose, and 5% return. For Dogecoin, the number is also high, with 75% of all wallets making a profit, and 23% losing, and 3% returning.
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This comparison shows how poorly Cardano is performing compared to other large-cap cryptocurrencies. If the ADA price continues to struggle, the profitability gap could continue to widen from here, leading to more Cardano investors being in the red.
At the time of writing, ADA price is trending towards $0.42, down 4.4% in the last day. However, on the weekly chart, it is holding on to gains of 5.29% after recovering last week.
Featured image created using Dall.E, chart from Tradingview.com