A striking trend in the Cardano (ADA) community has just been revealed by data that IntoTheBlock has made public, showing that a sizable 89% majority of ADA investors are struggling with losses. According to the data analytics company’s findings, a large portion of ADA holders are presently “out of the money,” which means that their holdings are currently valued at a loss.
The sobering numbers offer a bleak picture, with 3.95 million addresses falling into the “loss-making” category, with a combined value of 27.3 billion ADA, or about $7.9 billion at current market values.
In terms of market capitalization, Cardano ranks third among cryptocurrencies, with a market value that exceeds $1 billion when comparing the proportion of holders who are experiencing losses to those who are experiencing profits. Only a paltry $2.233 billion worth of ADA outperforms Cardano’s $10.133 billion market value as a whole.
FOMO strikes back
The fact that people purchased Cardano tokens for between $0.374 and $0.43 each is remarkable. Curiously, this group, which consists of a sizeable 482,270 addresses and 8.85 billion ADA tokens in total, has the highest portion of “loss-making” ADA.
This scenario’s fascinating aspect is that ADA’s price showed noticeable swings in the middle of July, just around its local peak. A significant federal judge decision made during this time favoured XRP in a well-publicized legal dispute with the SEC.
Consequently, as a result of the positive ripple effect of this breakthrough, Cardano’s value skyrocketed by a significant 30%. The following day, however, saw a surprising number of investors caught in the grips of losses.
