The current state of the crypto market recovery has left many Cardano holders in a state of disappointment and frustration. Despite the overall positive trend in the market, data from IntoTheBlock indicates that Cardano is lagging behind as the worst performer in terms of profitability among the top 10 largest cryptocurrencies by market cap. This has led to a large number of long-term believers and investors nursing losses and questioning the reasons behind this underperformance.
The profitability of Cardano has remained consistently low since the market crash of 2022. Even with the recent market recovery, the majority of investors find themselves underwater on their investments. The ADA price has struggled to follow the market trend and has been beaten down at major resistances such as $0.6 and $0.7. IntoTheBlock data reveals that only 25% of all Cardano owners are currently seeing any profit, while a staggering 66% are experiencing losses. The remaining 9% are at a breakeven point, with their current holdings valued at the same price they were last moved at.
With approximately 4.5 million Cardano holders in the market, only 1.11 million are currently in a profitable position. On the other hand, 2.96 million addresses are facing losses, and 397,740 addresses are at breakeven. If the price of ADA were to fall below $0.35, an additional 138,000 addresses would be pushed into losses, further widening the gap in profitability. However, if the price manages to surpass $0.47, it could potentially bring back 85,590 addresses into a profitable zone.
Comparison with Other Cryptocurrencies
To put things into perspective, let’s compare Cardano’s profitability with that of other top cryptocurrencies. Bitcoin, the largest cryptocurrency in the space, currently has 89% of its holders in profit, with only 7% facing losses and 5% at breakeven. Ethereum, the second-largest cryptocurrency, shows 82% of its holders in profit, 12% in losses, and 5% at breakeven. Even Dogecoin, a meme coin, boasts higher profitability numbers than Cardano, with 75% of all wallets in profit.
If the ADA price continues to struggle and fails to show signs of improvement, the profitability gap is likely to widen further, potentially sinking more Cardano investors into the red. At the time of writing, the ADA price sits at $0.42, with a 4.4% decline in the last day. However, on a weekly chart, it has managed to hold onto a 5.29% gain after a recovery in the previous week.
Overall, the struggles faced by Cardano holders in terms of profitability are concerning. As the market continues to fluctuate, it remains to be seen whether Cardano will be able to turn the tide and bring its investors back into the green.