According to U.Today, a recent analysis by data analytics firm IntoTheBlock has revealed a worrying trend in the Cardano (ADA) ecosystem. The report indicates that a significant number of ADA holders are currently in loss. The study examined the profitability of holders across various layer-1 networks, showing considerable differences.
Bitcoin emerged as the clear leader, with a high percentage of holders in profit, closely followed by TRX. Dogecoin (DOGE) and Ethereum (ETH) also showed strong profitability among their holders. However, Cardano stood out with only 35% of its holders currently in profit.
The data further reveals that the profitability of ADA addresses is under pressure. Out of the 1.59 million addresses holding 14.07 billion ADA, a significant portion — 5.71 billion ADA — were bought at prices ranging from $0.000006 to $0.299162 per token. In contrast, a staggering 2.73 million addresses are experiencing losses, holding 20.07 billion ADA, primarily from purchases made between $0.5975 and $0.7265 per ADA.
Currently, 152,940 addresses are at a break-even point, with 947.87 million ADA collectively held. This complex data leads to varied interpretations. On one side, the increasing losses incurred by Cardano holders exert significant downward pressure on the cryptocurrency's price. On the other side, it suggests a potential undervaluation in the market, indicating the possibility of a substantial revaluation if positive developments occur unexpectedly.