Cardano (ADA) continues to see good momentum even after the broader crypto market seems to be slowing down over the last few days. However, despite the action that the altcoin is seeing, holders are not faring well as the vast majority of them are still seeing losses.
The Majority Of Cardano Holders Are In The Red
As data from IntoTheBlock shows, there is currently more than twice the number of those in profits who are seeing losses from their Cardano holdings. This figure puts the large majority of holders in the red region even at a time when more holders of some of the largest coins in the market are more in profit than in loss.
The data which is taken from on-chain using the amount at which the coins were last moved compared to the current price of the digital asset, puts 71% of all ADA investors currently seeing losses. On the flip side of this, only 25% of investors are currently in the green. The remaining 4% are those whose holdings were presumably bought around current prices.
Given this, Cardano has been one of the least profitable of the top 10 largest cryptocurrencies by market cap. Others such as Bitcoin, Ethereum, and Dogecoin are all seeing levels where more than 55% of holders are sitting in profit.
Interestingly, Cardano has a lower long-term holder composition compared to these other assets. As of the time of this writing, only 44% of all ADA holders have held for more than one year, while other top cryptocurrencies are seeing long-term holder composition higher than 60%.
This can explain the low profitability being recorded among ADA investors. Historically, long-term cryptocurrency holders have fared better than short-term holders, hence, the high profitability margins seen in BTC and ETH.
ADA On The Charts
Despite the low profitability being recorded among Cardano investors, the coin is still seeing a lot of interest. Over the last 24 hours when the larger cryptocurrencies are seeing little to no gains, the price of ADA has rallied more than 2.50%. The coin is now rallying independently of the market, which points to very strong bullishness in the token.
This recovery in price is already showing that the month of February could bring good tidings for investors. However, ADA is still a long way from its all-time high price, and unless it is able to successfully 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 recovers to $0.38 | Source: ADAUSD on TradingView.com