Mon. Jul 4th, 2022

Once the third largest cryptocurrency in the world, Cardan (ADA) it has recently underperformed compared to other altcoins in the top ten list. After breaking above $1.20 levels last week, Cardano is hovering around the psychological support at $1.0 again. As this happens, more and more investors have realized that they are holding back unrealized losses for ADA. Since last September 2021, Cardano has corrected almost 66% from its all-time high of $3.09. If the selling pressure continues, there is still a chance that it could drop below $1.0. According to him indicator provided by IntoTheBlock, nearly 2/3 of 67% of ADA holders are underwater. Only a quarter of Cardano investors are in the green and 9% of them are at breakeven. The indicator basically compares the average cost of all current inverters to their current price. According to the on-chain analytics provider, 3.41 million ADA addresses are currently in the red versus just 1.25 million investors in the green. The indicator also notes that the vast majority of ADA holders, 76%, have had it for less than a year. Only 11 percent of ADA investors have held it for more than a year and these investors are still making a profit. On-chain data provider Santiment also shares an interesting supply distribution. Note:

Cardano supply is being withdrawn from $100k+ $ADA addresses. The low-middle and high-middle tiers are the group that is consistently piling up, and these $100-$100,000 ADA holders now own their #AllTimeHigh of 16.8% of the available supply.

Some positive news for Cardano

Despite the recent price correction, institutions have been paying close attention to Cardano. This year, the number of large transactions taking place on the Cardano blockchain has increased 50-fold. Cardan (ADA) has received the largest percentage share in the recently launched smart contract fund by Grayscasle. Only ADA enjoys a 24% weight in the fund. Since Grayscale caters to institutional products, this shows a growing institutional demand for Cardano. On the other hand, crypto trading platform Coinbase (NASDAQ:COIN) recently announced that it would introduce the staking feature for its users. Cardano would be one of the first blockchains to be part of the new offering. Currently, users receive a return of 3.75% by holding the ADA/USD pair. Furthermore, there has been a growing demand for ADA in the DeFi space. As we reported, the Total Value Locked (TVL) on the Cardano blockchain has surpassed $300 million. This marks a 39,000 percent increase in Cardano’s DeFi TVL since the beginning of 2022. After working on network speed and introducing smart contracts, Cardano’s next focus will be on scalability. The Next Major Cardano Blockchain Update Is Hydra.

By Farwa Raza

Farwa Raza is a writer who specializes in news articles. She has been writing on wttspod.com for over one years, and during that time she has written over 100+ articles on various topics ranging from politics to entertainment. Her goal as an author is to provide readers with the latest news stories while also providing her own opinion on them.