finbold.com
Cardano (ADA) is one of the most popular layer-1 blockchains for decentralized apps (DApps), decentralized finance (DeFi), and Web3. Recently, some new developments promise to leverage Cardano’s decentralization and network capacity.
Notably, one out of three holders of the Cardano native token, ADA, holds a profitable position. This is a massive change from the previous 5% holders “In the Money” reported by Finbold in September 2023.
Since then, this cryptocurrency’s market value has increased by $4.17 billion from $8.99 billion to a $13.16 billion capitalization by press time. An impressive 46% surge, followed by a slightly lower price appreciation due to ADA’s supply inflation.
In particular, the token rewarded its investors with 45% gains from the $0.254 price on September 8 to the $0.368 registered at the time of publication on November 22. Finbold retrieved the above data from IntoTheBlock.
Cardano long-term holders are still in the red
However, more than half of all Cardano holders are still under unrealized losses. 60% of all ADA holders are considered “Out of the Money,” while 7% are breakeven, and 33% register gains.
Interestingly, IntoTheBlock only considers 34% of wallet addresses holding ADA as “investors” or “whales.” In this context, “investors” are any Cardano address with at least 0.1% of the circulating supply, while a “whale” holds more than 1% of it.
Moreover, it is notable that close to two out of every three addresses (64%) have been Cardano long-term holders for over a year. In the meantime, 36% hold their ADA position for less than one year.
All things considered, the higher the percentage of long-term holders “out of the money,” the less likely these holders are to sell. With more capital entering the cryptocurrency market and more demand arriving, the lack of selling pressure can boost ADA’s ability to increase prices.
Nevertheless, the scenario might change as the price increases and more Cardano holders become positive.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.