Near 67% of Cardano investors have unrealized losses with ADA struggling at $1.0

  • As per data, nearly 765 of Cardano (ADA) investors have been holding it for unrealized losses.
  • Recently, low-mid and high-mid tiers ADA addresses have been accumulating taking their holding to an ATH of 16.8 percent of the total supply. 

Once the world’s third-largest cryptocurrency, Cardano (ADA) has underperformed recently in comparison to other altcoins in the top ten list. After shooting past $1.20 levels last week, Cardano is once again hovering around the psychological support of $1.0.

As this happens, more and more investors have been finding themselves to be holding up on unrealized losses for ADA. Since last September 2021, Cardano has corrected nearly 66 percent from its all-time high of $3.09. If the selling pressure continues, there’s still a possibility of it slipping under $1.0.

As per the indicator provided by IntoTheBlock, nearly 2/3rd of 67 percent of ADA holders are underwater. Only a quarter of Cardano investors are in the green and 9 percent of them are at a breakeven point. The indicator basically compares the average cost of all current investors to its current price.

As per the on-chain analytics provider, 3.41 million ADA addresses are currently in the red against just 1.25 million investors in the green. The indicator also notes that a vast majority of ADA holders, 76 percent, have held it for less than a year. Only 11 percent of ADA investors have been holding it for more than a year and these investors are still in profit.

On-chain data provider Santiment also shares an interesting supply distribution. It notes:

Cardano supply is moving out of $100k+ $ADA addresses. The low-mid and high-mid tiers are the group accumulating consistently, and these 100 to 100k $ADA holders now own their #AllTimeHigh of 16.8% of the available supply. 

Some positive news for Cardano

Despite the recent price correction, institutions have been paying close attention to Cardano. This year, the number of large transactions taking place on the Cardano blockchain have shot up by 50x.

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Furthermore, Cardano (ADA) has received the largest percentage holding in the newly launched smart contracts fund by Grayscasle. ADA alone enjoys a 24 percent weightage in the fund. Since Grayscale caters to institutional products, this shows growing institutional demand for Cardano.

On the other hand, crypto trading platform Coinbase (NASDAQ: COIN) recently announced it would introduce staking feature for its users. Cardano would be one of the first blockchain to be a part of the new offering. Currently, users are receiving a 3.75 percent yield on holding the ADA/USD pair.

Also, there’s been a growing demand for ADA in the DeFi space. As we reported, the total value locked (TVL) on the Cardano blockchain has surged past $300 million. This marks a 39,000 percent increase in Cardano’s DeFi TVL since the beginning of 2022.

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Read More: Institutional demand for Cardano (ADA) skyrockets as DeFi TVL surges past $300 million

After working on network speed and introducing smart contracts, Cardano’s next focus will be on scalability. The next major upgrade to the Cardano blockchain is Hydra.

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About Author

Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fictions novels and sometimes explores his culinary skills.

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