Cardano (ADA), one of the leading layer-1 networks in the cryptocurrency market, is facing significant challenges as its holders experience losses. According to on-chain analytics firm IntoTheBlock, only about 35% of ADA’s holders are currently in profit, a much lower percentage compared to Bitcoin (86%) and Ethereum (81%).
ADA’s lackluster performance on the price charts has contributed to its decline in market rankings. Over the past month, ADA has been surpassed by coins like Dogecoin and Toncoin in terms of valuation. The coin has also seen a decline of 28% in the past month and 22% year-to-date.
This decline in ADA’s price has affected its on-chain activity as well. The number of daily active addresses has plummeted from over 70,000 during the price peak to just 30,000. It appears that investors have been reluctant to buy ADA’s dip, as indicated by the consistent decline in whale cohorts’ holdings over the past few months.
However, the subdued prices and low profitability of ADA may present an opportunity for accumulation for those who believe in the coin’s potential. While ADA’s performance may be concerning at the moment, history shows that a super cycle, similar to the one seen after the 2020 Bitcoin halving, could potentially propel ADA to challenge its all-time high levels by 2025.
In conclusion, ADA’s current performance raises concerns about its demand in the near term. However, for bullish ADA holders, the current situation could present an opportunity for long-term accumulation with the hope of a future price surge.
Cardano’s current performance raises concerns about its demand in the near term. Despite being one of the leading layer-1 networks in the cryptocurrency market, ADA’s lackluster performance on the price charts has contributed to its decline in market rankings. Only about 35% of ADA’s holders are currently in profit, which is significantly lower compared to Bitcoin and Ethereum. This indicates that a majority of ADA holders have experienced losses.
Furthermore, ADA’s decline in market valuation has resulted in it being surpassed by other coins such as Dogecoin and Toncoin. Over the past month, ADA has seen a decline of 28%, and year-to-date, it has seen a decline of 22%. This downward trend in price has affected ADA’s on-chain activity as well, with the number of daily active addresses plummeting from over 70,000 to just 30,000.
Investors have also been reluctant to buy ADA’s dip, as indicated by the consistent decline in whale cohorts’ holdings over the past few months. This lack of interest may be attributed to the subdued prices and low profitability of ADA. However, for those who believe in the coin’s potential, the current situation could present an opportunity for accumulation as they anticipate a future price surge.
Looking ahead, it is important to consider the potential for a super cycle in the cryptocurrency market. History has shown that after the 2020 Bitcoin halving, a super cycle occurred that propelled various coins to challenge their all-time high levels. Similarly, ADA could potentially experience a super cycle by 2025, which would provide an opportunity for significant price growth.
In summary, Cardano’s current performance raises concerns about its demand in the near term. However, for bullish ADA holders, the current situation could present an opportunity for long-term accumulation in anticipation of a future price surge.
For more information on Cardano’s performance and market trends, you may visit the official Cardano website at link.