Over 80% of Cardano investors or roughly 3.5 million addresses are at a loss or out-of-the-money or sitting on unrealized losses, data from blockchain analytics firm IntoTheBlock showed.
Around 5% or 173,770 investors are at the money or breaking even on their investments, and 14%, or 682,920 are in the money or sitting on unrealized gains.
This demonstrates a troubling trend for the once touted “Ethereum killer” that is trying to gain traction in the fiercely competitive cryptocurrency market.
Over the past week, the seven-ranked altcoin lost nearly 9% of its value.
At the time of writing this article, Cardano’s native token ADA is exchanging hands at $0.33, marginally down in the last 24 hours. Its market cap stood at $11.5 billion.
It’s important to note that IntoTheBlock’s data is based on blockchain analysis and does not depend on ADA that was bought and kept on centralized trading platforms, which could significantly change the data that is already available.
Despite its recent price drop, long-term investors, on the other hand, are preferring to hold their coins for over a year.
Cardano’s Long-Term Holders Continues To Show Faith
Long-term holders of ADA are typically less likely to sell their coins during times of market turbulence, which can help keep the price stable. This is essential for maintaining the market’s overall stability since it prevents sudden price declines brought on by panic selling.
The circulating supply of the cryptocurrency falls as more people keep their ADA bags, which might perhaps result in an increase in demand for the remaining coins as well as a rise in price.
Cardano ecosystem proponents have noted that the project has a strong development team and a solid vision for the future, which might make it a powerful competitor in the cryptocurrency sector in the long run.
The ADA community anticipates the token to rise in value throughout the month of March.
That said, a top Cardano-based NFT marketplace JPG Store launched a new feature called Language Localization to scale up its site’s translations and provide broader access for global artists to create NFTs, TronWeekly reported.
JPG Store boasts of driving Cardano’s NFT industry to achieve over $470 million in total sales in just over a year since its launch, handling 97% of the current NFT volume on the blockchain. The JPG team predicts that as Cardano’s DeFi ecosystem matures, NFT trading volume will increase.