Cardano (ADA) continues to see good momentum even as the broader crypto market appears to have slowed over the past few days. However, despite the action that altcoins have seen, shareholders are not doing well as the majority are still experiencing losses.
The Majority Of Cardano Holders Are In The Red
As the data from IntoTheBlock shows, now there are more than twice the number of those in profit who saw losses from ownership of Cardano. This figure puts the great majority of holders in the red area even at a time when other holders of some of the largest coins in the market are more in profit than loss.
Data taken from on-chain using the last number of coins moved compared to the current price of the digital asset, makes 71% of all ADA investors currently experiencing losses. On the flip side of this, only 25% of investors are currently in the green. The remaining 4% are those whose ownership can be purchased at current prices.
Because of this, Cardano has become one of the most profitable of the 10 largest cryptocurrencies by market cap. Others such as Bitcoin, Ethereum, and Dogecoin are all seeing levels where more than 55% of holders are profitable.
Majority of ADA holders still in losses | Source: IntoTheBlock
Interestingly, Cardano has a lower composition of long-term holders compared to these other assets. At the time of this writing, only 44% of all ADA holders have held it for more than a year, while other top cryptocurrencies see a composition of long-term holders higher than 60%.
This may explain the low profitability recorded among ADA investors. Historically, long-term holders of cryptocurrencies have fared better than short-term holders, hence the high profit margins seen in BTC and ETH.
IT IS IN THE CHART
Although low profits were recorded among Cardano investors, the coin still attracted attention. During the last 24 hours when the bigger cryptocurrencies did not make any profit, the price of ADA increased by more than 2.50%. The coin is currently rallying freely from the market, which indicates a strong bullishness in the token.
The price recovery has shown that February may bring good news for investors. However, ADA is still far from its all-time high price, and unless it manages to cross $1, the majority of investors will remain in the red.
At the time of this writing, ADA is changing hands at a price of 0.3822. It has a market cap of $13.2 billion with a 24-hour trading volume of $80.92 million, according to data from Coinmarketcap.
ADA price returned to $ 0.38 | Source: ADAUSD on TradingView.com