Cardano (ADA) is one of the worst performing cryptocurrencies in terms of profit


Cardano (ADA) is listed 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 most investment when money is put into the asset. However, for some this was not the case as their assets underperformed in the market. Cardano is one of those who has pushed the majority of its investors into the red after consistent dips.

82% in loss

Evidence shows that Cardano investors have the worst luck in space† The digital asset, which peaked at $3 last year, has struggled to maintain its value. Since then, it has fallen below $1 several times and is reaching annual lows. This, in turn, has caused investors to see the value of their investments plummet, pushing the majority of holders into loss territory.

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While the entire market has suffered from last year’s bull rallies, Cardano appears to have taken the hit harder than any other digital asset. The price of the cryptocurrency has fallen by more than 60% from its all-time high. This has resulted in 82% of all investors losing money at current prices.

82% of ADA holders in loss | Source: IntoTheBlock

Now, the investors who have held the tokens longer have it better, but they only make up a small percentage of the holding base. The majority of these holders have only been in the digital asset for 1-12 months, leaving most holders at a loss in the medium term.

ADA price trading below $1 | Source: ADAUSD on TradingView.com

The percentage of Cardano investors making a profit at current prices is only 13%. The remaining 5% is in neutral territory, meaning they have invested in the cryptocurrency at current prices. Since 12% of investors are those who have held their tokens for a year or more, it is safe to say that holders are winning in the longer term. Providing more evidence that long-term holding appears to be the best course of action with cryptocurrencies.

Cardano vs Top Coins

However, compared to the other top assets, ADA holders fare much worse when looking at the percentage of holders making a profit. However, if we look at the composition of the holder by time held, we see a similar trend for profit.

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for bitcoins, holders in profit are 53% but if you look at the time available, 58% of all BTC holders have held for more than 1 year, making a profit. The second largest cryptocurrency by market cap, Ethereum, deviates slightly from this, but still shows a larger composition of holder over time held. 59% of all investors have shares for more than 1 year, while 72% of investors make a profit

What this shows for Cardano is that the asset still has a relatively young investor base. Given that the majority of these investors came in when the digital asset was in a bull market, it’s likely that the bulk of investors would be at a loss as the market heads into what appears to be another bear market.

Featured image from Forbes, chart from TradingView.com

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