Cardano (ADA) Mostly Bearish: 12% of Holders in Profit

The prolonged dip in the price of ADA has influenced market sentiment.

Sad bear in a Cardano ADA landscape
  • The majority of Cardano’s ADA holders are facing losses.
  • The prolonged dip in the price of ADA has influenced market sentiment.
  • The broader Cardano ecosystem is exhibiting innovation and growth.

The Cardano community is currently experiencing a bumpy ride as the native cryptocurrency ADA struggles to keep up with the current bearish trend in the market.

According to data from IntoTheBlock, most ADA holders are currently faced with losses, with 84% ‘Out of the Money,’ only 12% seeing any profits, and 5% in a neutral zone at the time of writing.

The performance of ADA puts it amidst the most affected cryptocurrencies in the market, with profit margins significantly lower than other top 10 cryptocurrencies, wherein ADA currently claims the #7 rank by market capitalization.

In contrast to the losses for ADA holders, Bitcoin (BTC) is currently recording profits for 61% of holders, Ethereum (ETH) is standing at 56%, and Polygon (MATIC) is at 42%.

Despite the price of ADA remaining in the doldrums, the broader Cardano ecosystem is exhibiting innovation and growth, a positive sentiment that has yet to be reflected in the network’s native cryptocurrency.

The Ups and Downs of Cardano

Despite the price of ADA trending in a downward trajectory this week, the broader ecosystem has displayed notable growth, with notable developments being announced across the network, hinting that the Age of Voltaire is around the corner.

However, the prolonged dip in the price of ADA has influenced market sentiment, as the cryptocurrency is currently down by more than 89.89% from its all-time high of $3.09 on September 2nd, 2021.

All-time Price Chart for Cardano.

All-time Price Chart for Cardano. Source: CoinMarketCap

On the bright side, DeFiLlama indicates that the ADA-denominated Total Value Locked (TVL) within the Cardano blockchain has reached an all-time high of 341 million ADA.

In another recent development, Allianz Netherlands has selected Cardano to manage all defined contribution (DC) pension arrangements for its insurance franchise and premium pension institution (PPI), a combined mandate totaling approximately $2.1 billion.

Input Output (IO) has announced a Mithril v2310.0-prerelease on March 8th to “allow faster bootstrapping of Cardano nodes.’ Furthermore, Cardano-based crypto asset lending platform Aada Finance (AADA) has recorded a notable week, doubling its TVL and handling more than $1.7 million of the Cardano ecosystem.

At the time of writing, ADA is yet to catch up to the uptrend, trading at $0.31, recording a dip of 20.52% over the past thirty days. In response to Cardano’s native token being just 31.14% above its cycle low of $0.24 on January 7th, 2023, the market outlook for ADA is reported as ‘Mostly Bearish.’

On the Flipside

  • Some community members have suggested that the development of the Cardano ecosystem inspires positive sentiment but still question when their current bearish investments in ADA and CNFTs turn around.

Why You Should Care

Cardano’s native cryptocurrency ADA is facing a bearish trend, with most holders facing losses. Despite the dip, the broader Cardano ecosystem is exhibiting growth in terms of innovation and expansion, attesting to a bigger picture for the future of the network.

Read more about Cardano’s decentralized stablecoin DJED:
DJED: Cardano’s Decentralized Stablecoin

Read more about some developments in the Cardano ecosystem:
Cardano-based JPG Store Opens Early Access for No-Code NFT Tool

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Monique Brelage

Monique Brelage is a South African cryptocurrency news reporter at DailyCoin focused on the Cardano (ADA) and Solana (SOL) ecosystems. She aims to convert complex topics into digestible and engaging news pieces for readers of all knowledge levels.   Before her journey with DailyCoin, Monique has immersed herself in the realm of NFTs and Web 3.0 since 2019. Her experience in multiple industries enables her to conduct critical analyses and convert it into her writing. She acknowledges the profound impact decentralization, Web 3.0 technology, and everything beyond will have on the future.   Monique completed a Bachelor of Communication from NWU in 2020. Her background in media studies, creative writing, and philosophy helped shape her method of news curation, thereby ensuring a broader perspective to help readers remain critical of what they see. Monique's articulation, writing quality, and work ethic are professional qualities she takes pride in.   Monique lives on a farm in South Africa with her partner and cat. She works on her NFT and tattoo art in her free time, and enjoys the natural world around her. She likes reading material that broadens her perspective, indie music, and video games to blow off some steam.