In the midst of a crypto market recovery, Cardano holders find themselves in a precarious position. Data from IntoTheBlock reveals that Cardano is currently the worst performer in terms of profitability among the top 10 largest cryptocurrencies by market cap. This disappointing performance has left many long-term believers and investors in despair, as the profitability of Cardano has remained distressingly low since the market crash of 2022.
Despite the overall market recovery, the vast majority of Cardano investors are still nursing losses. The ADA price has failed to follow the positive trend of the rest of the market, languishing at significant resistances such as $0.6 and $0.7. According to IntoTheBlock data, only a mere 25% of all Cardano owners are currently seeing any profit, while a staggering 66% are incurring losses. The remaining 9% are at a neutral position, with their investments sitting at breakeven.
With a total of 4.5 million Cardano holders, the statistics paint a bleak picture of the current situation. Out of these holders, only 1.11 million are currently in profit, while a staggering 2.96 million addresses are at losses. Additionally, 397,740 addresses are currently at breakeven. The potential for further widening of this profitability gap looms large, especially if the ADA price were to plummet below $0.35, which would drag another 138,000 addresses into losses.
To illustrate just how far behind Cardano is falling in terms of profitability, a comparison with other top cryptocurrencies is necessary. Bitcoin, the largest cryptocurrency, boasts 89% of all holders in profit, with only 7% in losses and 5% at breakeven. Ethereum, the second-largest cryptocurrency, has 82% of its holders in profit, while 12% are at losses and 5% at breakeven. Even the meme coin Dogecoin outperforms Cardano, with 75% of its wallets in profit, 23% in losses, and 3% at breakeven. This stark contrast emphasizes the concerning underperformance of Cardano.
As the ADA price continues to struggle, the profitability gap for Cardano investors may continue to widen. If the price fails to gain momentum, more investors could find themselves in the red. At the time of writing, the ADA price is hovering around $0.42 with a 4.4% decline in the past day. However, it has managed to hold onto a 5.29% gain on the weekly chart after a slight recovery last week.
The troubling profitability crisis facing Cardano highlights the need for investors to reevaluate their positions and adopt a cautious approach. By closely monitoring market trends and making informed decisions, Cardano holders can navigate through the current challenges and potentially steer towards a path of profitability and sustainability.