Cardano HODLers Left in the Dust With No Sign of Profitability, ADA Price Stuck In Rut

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Cardano, the third-generation decentralized proof-of-stake(PoS) blockchain has established itself under the worst performers category. After a consistent dip, Cardano has left the majority of its investors in a loss. It is however now facing stiff competition in the market space. 

Cardano Investors in loss

Cardano’s native $ADA coin is currently trading below $1, putting 82% of the cryptocurrency’s holders “out of the money.” Since hitting an all-time high of $3.1 in November 2021, the price of ADA has been progressively declining.

It has gone below $1 numerous times since then, reaching annual lows. As a result, investors have overestimated the value of their investments, putting the majority of holders in the red.

Due to the sustained decrease in the cryptocurrency’s price, 82% of Cardano token holders are now losing money, while 3% are breaking even, and only 14%are profiting. 

Investors who have held the tokens for a longer period of time are now having a better run, but they only account for a small percentage of the total holder base.

The majority of these investors have only been in the digital asset for 1 to 12 months, leaving the majority of midterm investors in the red.

According to the sources only 76% of Cardano token holders purchased ADA the last year, with 12% purchasing it less than a month ago. 

Only 11% of ADA token holders have been HODLing the asset for over a year it’s reasonable to say that long-term investors are winning. Adding to the evidence that owning cryptocurrencies for the long term appear to be the best strategy. 

Cardano appears to have taken a bigger knock than any other digital asset after last year’s bull rallies, despite underperforming the whole market.

The cryptocurrency’s value has dropped by more than 60% from its all-time high. At present pricing, this indicates that 82% of all investors are losing money.  

Cardano in Camparison to Top Coins

When compared to other top assets, however, ADA investors are in far worse  terms. Profitable holders account for 53% of bitcoin, but 58 percent of all BTC holders have held for more than a year, putting them in the profit category.

Ethereum, the second-largest cryptocurrency by market capitalization, deviates slightly from this, but still has a greater holding composition when measured by time. 59% of all investors have been in the market for more than a year, and 72% have made a profit.

This may indicate that Cardano is still a new asset with a young investor base. Given that the majority of these investors bought when the digital asset was in a bull market, it stands to reason that the majority of them are now losing money as the market enters what appears to be another bear market.