Cardano (ADA) Is One Of The Worst Performing Crypto In Terms Of Profit
23 April 2022 - 01:00AM
NEWSBTC
Cardano (ADA) has made it on the list as one of the
worst-performing assets when it comes to profitability. The ability
to make a profit from a digital asset is what drives the majority
of investments when putting money in the asset. However, for some,
this has not been the case given that their assets have been
performing badly in the market. Cardano is one of those that have
put the majority of its investors in the red after consistent dips.
82% In Loss Data shows that Cardano investors are having some of
the worst luck in the space. The digital asset which had hit a peak
of $3 last year has had a hard time maintaining its value. It has
since crumbled back below $1 numerous times, touching yearly lows.
In turn, this has caused investors to watch the value of their
investments plummet putting the majority of holders in the loss
territory. Related Reading | Monero Soars 50% As Crypto Market
Weakens, What’s Behind the Rally? While the entire market has had a
bad run of it following the bull rallies of last year, Cardano
seems to have taken the hit harder than any other digital asset.
The price of the cryptocurrency is down more than 60% from its
all-time high. What this has meant is that 82% of all investors are
losing money at current prices. 82% of ADA holders in loss |
Source: IntoTheBlock Now, the investors who have held the tokens
for longer are having a better run of it but they only make up a
small percentage of the holder base. The majority of these holders
have only been in the digital asset for 1-12 months, putting most
of the midterm holders at loss. ADA price trading below $1 |
Source: ADAUSD on TradingView.com The percentage of Cardano
investors who are making profits at current prices is only 13%. The
other 5% are sitting in the neutral territory, meaning that they
invested in the cryptocurrency at the current prices. Given that
12% of investors are those who have held their tokens for a year or
more, it is safe to say that longer-term holders are winning.
Giving more proof to the fact that holding for the long term seems
to be the best course of action with cryptocurrencies. Cardano Vs
Top Coins Compared to the other top assets though, ADA holders are
doing far worse when looking at the percentage of holders in
profit. However, taking a look at the holder composition by time
held shows a similar trend for profit. Related Reading | Why A
“Boring” Bitcoin Could Be A Good Thing For bitcoin, holders in
profit are 53% but when you take a look at the time held, 58% of
all BTC holders have held for more than 1 year, putting them in
profit. The second-largest cryptocurrency by market cap, Ethereum,
slightly deviates from this but still shows a larger holder
composition by time held. 59% of all investors have held for more
than 1 year while 72% of investors are in profit. What this shows
for Cardano is that the asset still has a relatively young base of
investors. Given that majority of these investors had come in when
the digital asset was in a bull market, it stands to reason that it
would see the largest portion of investors in loss now that the
market is headed into what looks like another bear market.
Featured image from Forbes, chart from TradingView.com
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