Recently, unveiled data by analytics firm IntoTheBlock has shed light on a concerning trend within the Cardano (ADA) community, exposing that a substantial 89% majority of ADA holders find themselves entangled in losses.
The sobering statistics lay bare a stark reality, indicating that a whopping 3.95 million addresses, collectively possessing a significant 27.3 billion ADA – valued at approximately $7.9 billion based on current market rates – are submerged in the realm of losses.
Cardano, which ranks third among cryptocurrencies in terms of market capitalization, boasting a staggering $1 billion valuation, finds itself divided between those grappling with losses and those reveling in gains. Amid the total market capitalization of $10.133 billion for Cardano, a mere $2.233 billion worth of ADA is enjoying the sweet taste of success.
A striking observation emerges from the analysis of those who invested in ADA tokens within the price range of $0.374 to $0.43 per token. This specific group claims the lion’s share of “loss-making” ADA, comprising an impressive 482,270 addresses collectively clutching a hefty 8.85 billion ADA tokens.
Cardano’s DeFi Ecosystem’s TVL Triples In 2023
Despite the underwhelming price movement of Cardano (ADA), there’s a silver lining. The Total Value Locked (TVL) within its native decentralized finance (DeFi) ecosystem has nearly tripled in 2023. A comprehensive on-chain analysis delves into how this TVL growth might impact future ADA price movements.
Starting the year strong, ADA peaked at $0.45 in mid-April. However, regulatory uncertainties from Q2 onwards triggered a downturn in its price trajectory. Presently hovering at $0.29, ADA has experienced a 36% decline from its 2023 peak recorded on April 17.
Nevertheless, the Cardano DeFi ecosystem has taken a different trajectory. Despite recent regulatory challenges, its TVL has experienced substantial growth in the second half of 2023. As of August 15, the Cardano TVL stands at an impressive $177.83 million, showcasing a remarkable 250% growth throughout 2023.
In this volatile landscape, Cardano holders grapple with losses while the DeFi ecosystem emerges as a beacon of resilience, potentially hinting at a more optimistic future for this cryptocurrency.