ADA’s underperformance has led to a continuous decline in its market rankings. Among leading layer-1 (L1) networks, Cardano (ADA) experienced one of the highest percentages of holders facing losses, sparking concerns regarding its near-term demand.
As of now, ADA’s unrealized loss has expanded to 15.71%. Notably, whales refrained from purchasing ADA during its dip.
Cardano’s Struggles and On-Chain Activity
ADA’s Holder Profitability: According to a recent post on X by on-chain analytics firm IntoTheBlock, only about 35% of ADA’s holders were in profit, contrasting sharply with Bitcoin (BTC) and Ethereum (ETH), where 86% and 81% of holders were in profit, respectively.
Market Performance and Ranking: Currently ranked as the 10th largest cryptocurrency by market cap, ADA has shown lackluster performance on the price charts lately. The coin experienced a significant decline of 28% over the last month and nearly 22% year-to-date (YTD), as reported by CoinMarketCap.
Impact on Market Rankings: ADA’s below-par performance has contributed to its steady decline in market rankings. Over the last month, it was surpassed by coins like Dogecoin (DOGE) and Toncoin (TON) in terms of valuation.
Price Trends and Unrealized Loss: Although ADA reached an annual peak of $0.77 around mid-May, it has since trended downwards. This slump has led to the network’s average unrealized loss widening to 15.71% at the time of writing, meaning ADA holders would face an average loss of 15.71% if they sold their coins at current prices.
Source: Santiment
Impact on On-Chain Activity: The price decline has also affected ADA’s on-chain activity, with daily active addresses plummeting to 30,000 from over 70,000 seen during the price peak.
Investor Sentiment and ADA’s Potential for Accumulation
Despite subdued prices and low profitability, there may be opportunities for accumulation with ADA, unlike other coins witnessing increased profit-taking. However, the question arises: Were investors genuinely interested in buying ADA’s dip?
According to data from Santiment, the holdings of whale cohorts have consistently decreased over the last 2-3 months, indicating that they were net sellers of their ADA coins.
Source: Santiment
On a brighter note for bullish ADA holders, ADA’s historical performance suggests a super cycle a year after the 2020 Bitcoin halving. If history repeats itself, ADA could potentially challenge its all-time high (ATH) levels in 2025.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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