In the midst of the recent crypto market recovery, one cryptocurrency has stood out for all the wrong reasons – Cardano. Despite hopes of a resurgence, a significant number of Cardano holders are still grappling with losses. Data from IntoTheBlock paints a bleak picture, highlighting Cardano as the worst performer in terms of profitability among the top 10 largest cryptocurrencies by market cap. This has left many long-term believers questioning why Cardano has failed to deliver returns, even as other digital assets have shown signs of recovery.
The Lingering Effects of the Market Crash
The profitability of Cardano has been on a downward spiral since the market crash of 2022. Even as the broader market attempts to bounce back, the majority of Cardano investors find themselves underwater on their investments. The ADA price has struggled to keep up with the overall market trend, continuously facing resistance levels at key price points such as $0.6 and $0.7. IntoTheBlock data reveals that a meager 25% of all Cardano owners are currently in profit, while a staggering 66% are facing losses. The remaining 9% are sitting at a neutral position, neither making gains nor losses.
The Numbers Behind the Struggle
With approximately 4.5 million Cardano holders in the market, the statistics are troubling. Only 1.11 million holders are currently seeing any form of profit on their holdings, while 2.96 million addresses are witnessing losses. A further 397,740 addresses are stagnating at breakeven. Should the ADA price dip below $0.35 again, another 138,000 addresses will slide into losses, widening the profitability gap even further. Conversely, a move above $0.47 could bring 85,590 addresses back into profit.
To highlight the stark contrast in profitability, a comparison with other leading cryptocurrencies is telling. Bitcoin, the largest cryptocurrency by market capitalization, boasts 89% of all holders in profit, with just 7% in losses and 5% at breakeven. Ethereum, the second-largest digital asset, shows 82% of its holders in profit, 12% in losses, and 5% at breakeven. Even Dogecoin, known for its volatile nature, has 75% of wallets in profit, 23% in losses, and 3% at breakeven. This comparison underscores the extent of Cardano’s underperformance within the large-cap cryptocurrency space.
As Cardano continues to struggle with profitability, the outlook remains uncertain. If the ADA price fails to gain traction, the profitability gap is likely to widen further, dragging more investors into the red. At the time of writing, the ADA price hovers around $0.42, reflecting a 4.4% decline in the past day. However, a glimmer of hope emerges from the weekly chart, showing a 5.29% gain after a recent recovery. Nonetheless, the road to profitability for Cardano holders remains arduous as the cryptocurrency battles to regain lost ground in a highly competitive market.
