Cardano whales continue to pile up despite asset decline of 34%
Instead of selling, the majority actively buys the token
Despite a questionable performance in the cryptocurrency market, whales on the Cardano network are not ready to drop their assets, creating additional pressure during the correction. Instead, they enter an active accumulation phase.
Major addresses on the rise
If on-chain data by Holiness suggests that major Cardano holders have increased their holdings by about 110% since the massive price drop in the market that kicked off on Jan. 17.
🐳 #cardano‘s price, like many #altcoins, have plummeted in the past 10 days, falling -34%. Large addresses with a value between 10k and 1M $ADA, hold 113% more in their collective bags since the January 17 decline, amassing $53.6 million in tokens. 📈 https://t.co/9V50jyrBlX pic.twitter.com/tQdwa7ym38
— Santiment (@santimentfeed) January 28, 2022
Previously, the same set of addresses had 45 million ADA tokens, and more than 95 million tokens are held by whales, according to today’s data.
Holder Composition and Profitability
In fact, the above-mentioned major addresses that currently hold nearly 100 million ADA tokens can be considered the majority of investors as the holder composition suggests that 71% of all Cardano investors are medium term. Short-term traders make up only 22% of all Cardano holders.
Only 7% of project holders could be selected as long-term traders. But according to the token’s profitability, most of the market continues to suffer losses as only 9% of all holders are currently profitable.
As data suggests, approximately 85% of all Cardano holders are currently incurring losses, placing the asset in the category of the worst performing digital assets on the market in terms of short- and long-term profitability.
Cardano’s profitability problem is most likely linked to both its market and social performance. As market data suggests, the largest buying volumes were present on Cardano during its run to $3, after which the asset faced a 65% correction.
At the time of writing, ADA is trading at $1,025 and losing 1.5% of its value in the past 24 hours.