Cardano, (ADA) is one of the least profitable assets. When investing in a digital asset, the main driver is the ability to profit. However, there have been some instances when this was not the case. This is because their assets are performing poorly on the market. Cardano, one of the most prominent of these investors has fallen after a series of dips.
82% In Loss
Cardano investors have the most difficult time in this space, according to data. It has struggled to maintain its $3 peak last year. The digital asset has been unable to hold its value above $1 several times since then and even reached annual lows. This has led investors to see their investment value plummet, putting most holders in loss territory.
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Cardano has suffered more losses than any other digital assets, despite the market going down after the bull rallies last year. The cryptocurrency’s price is now down 60% from the peak. This means that 82% are now losing their money due to current cryptocurrency prices.
82% of ADA Holders in Loss | Source: IntoTheBlock
The token holders who hold the tokens longer have a greater chance of success, but only a few percent of all holders. Most of these investors have been holding the tokens for between 1 and 12 months. This puts most midterm holders in a loss.
Source: ADAUSD at TradingView.com| Source: ADAUSD on TradingView.com
Only 13% of Cardano investor are currently making profit at current prices. The remaining 5% of investors are in neutral territory. This means that they did not invest in cryptocurrency at current prices. It’s safe to assume that long-term investors are more successful than those that have been holding their tokens for at least one year. This further supports the idea that cryptocurrencies are best if held for the long-term.
Cardano Vs Top Coins
ADA owners are performing far less than other assets when it comes to profit percentage. The trend in profit is similar if we look at the holdings by time.
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Holders in profit for bitcoin are 53%. However, when you consider the amount of time that BTC has been held for, 58% have held it longer than one year. That puts them in profit. Ethereum is the second largest cryptocurrency in terms of market capital, but it shows an even larger number of holders based on time. 59% have been holding the cryptocurrency for over 1 year, while 72% are making a profit.
Cardano has a young pool of investors, which is a good sign. Since the majority of the investors came in during a bull market for the digital asset, it makes sense that they would be the most affected by the current bear market.
Featured Image from Forbes. Chart by TradingView.com