Is Cardano (ADA) a Bad Investment in 2023? Data Analysis Reveals the Truth

Is Cardano (ADA) a Bad Investment in 2023? Data Analysis Reveals the Truth

The Struggles and Potential of Cardano (ADA) in the Blockchain Industry

Over the past years, Cardano (ADA) has emerged as one of the most popular cryptocurrencies, gradually securing its position as one of the top 10 largest cryptocurrencies in terms of market capitalization. However, despite the growth of the Cardano network, investors in its native ADA token have faced significant challenges in terms of profitability. Let’s delve into the current state of ADA and explore the insights of industry experts.

The Profitability Challenge for ADA Holders

According to data from the on-chain tracking website IntoTheBlock, ADA seems to be lagging behind other top 10 cryptocurrencies in terms of profitability for its holders. While other assets have managed to maintain reasonable profitability levels during the bear market, ADA has experienced a significant decline. In fact, the percentage of ADA investors currently seeing any kind of profit has fallen to 0%. More alarmingly, 95% of holders are reported to be experiencing losses, while 4% are in a neutral position.

To put this into perspective, Bitcoin, the largest cryptocurrency, has 64% of its holders in profit. Ethereum, the second-largest cryptocurrency, boasts 52% of holders in profit. Even Dogecoin, which is positioned one spot ahead of Cardano on the list, has 41% of holders with profits.

Holder Profile and Long-Term Outlook

A closer look at ADA’s holder profile reveals that mid to long-term traders dominate the base. IntoTheBlock data suggests that 39% of all ADA holders have held their coins for a duration of 1-12 months, while the remaining 61% have held for over one year. This indicates that ADA attracts investors with a long-term perspective who believe in the potential of the project.

Cardano’s Determination to Overcome Challenges

Despite the low profitability of ADA, investors continue to view its current price level as an opportunity for a favorable entry. The CoinShares Digital Asset Fund Flows Weekly report highlights that Cardano has managed to maintain its inflow trend, with institutional investors pouring an additional $0.43 million into the asset. This resilience indicates that market participants still have faith in Cardano’s future potential.

Crypto analysts also remain bullish on ADA’s prospects. Kara Szabo, one such analyst, predicts that the price of ADA could reach as high as $5 in the next bull market. Szabo believes that ADA is currently in a prime price range for accumulation. Another analyst, Hashtoshi, expects ADA to surpass its previous all-time high, which was achieved in 2021. This optimism is rooted in the network’s design and the strong community backing the token.

ADA price holding above $0.24 support


While the profitability levels for ADA holders have been challenging, Cardano continues to gather support and attract investors. The long-term perspective of its holders, as well as the influx of institutional investments, indicates that Cardano’s potential remains promising. As the blockchain industry evolves, Cardano’s unique approach and strong community support position it as a significant player in the cryptocurrency market. It’s crucial to keep an eye on ADA’s progress and the continuous improvements being made to the Cardano network.