Cardano, despite the recent overall market recovery in the cryptocurrency space, appears to be struggling with profitability for its holders. Data from IntoTheBlock reveals that Cardano is currently the worst performer among the top 10 largest cryptocurrencies by market cap, leaving many holders disappointed and questioning their long-term beliefs in the project. Ever since the market crash of 2022, Cardano’s profitability has remained strikingly low, and even with the recent market upswing, a significant portion of investors find themselves at a loss.
As it stands, only 25% of all Cardano owners are currently seeing any profits from their investments. On the other hand, a staggering 66% of holders are facing losses, while the remaining 9% are at a breakeven point. This data points to a troubling trend where the majority of the Cardano community is struggling to make gains, with only a fraction reaping the benefits of their investments. With approximately 4.5 million Cardano holders in total, it is concerning that only 1.11 million are in a profitable position, while a significant 2.96 million addresses are currently at a loss.
When comparing Cardano’s profitability with other major cryptocurrencies, the disparity becomes even more apparent. For instance, Bitcoin, the largest cryptocurrency by market cap, boasts 89% of its holders in profit, with only 7% facing losses and 5% at breakeven. Similarly, Ethereum, the second-largest cryptocurrency, sees 82% of its holders in profit, 12% in losses, and 5% at breakeven. Even Dogecoin, known for its meme origins, has 75% of its wallets in profit, with 23% in losses and 3% at breakeven. These comparisons highlight the significant underperformance of Cardano in terms of profitability when stacked against its peers.
Looking ahead, the future of Cardano’s profitability remains uncertain. If the ADA price continues to struggle and fails to break key resistances at levels like $0.6 and $0.7, the profitability gap may widen further, pushing more investors into losses. Conversely, if the price manages to surpass critical levels, it could bring relief to some holders currently in the red. At the time of writing, the ADA price is hovering at $0.42, experiencing a slight decline in the last 24 hours but holding onto gains from the previous week.
The state of Cardano holders’ profitability poses a significant challenge to the cryptocurrency’s community. With a large number of investors still underwater on their investments, there is a pressing need for the project to address the factors contributing to this lagging performance. As the broader crypto market continues to evolve, Cardano will need to find ways to enhance its profitability and regain the confidence of its disillusioned holders.
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