Data: About 80% of ADA coin holding addresses are in floating loss state

On March 6, according to the data of IntoTheBlock, about 3.53 million Cardano (ADA) current-holding addresses are in floating loss status, accounting for about 80% of the total number of current-holding addresses; The number of profitable addresses is only 682920, less than 16% of the total number of coin holding addresses; The remaining 173770 coin holding addresses are at the cost level, accounting for about 4% of the total number of coin holding addresses.

Interpretation of this information:

On March 6, data from IntoTheBlock revealed that the majority of current-holding addresses for Cardano (ADA) are experiencing floating losses. In fact, about 80% of the total number of current-holding addresses, which amounts to 3.53 million ADA, are currently in this status. The number of profitable addresses, on the other hand, is only 682,920, which represents less than 16% of the total number of coin holding addresses. The remaining 173,770 coin holding addresses, accounting for roughly 4% of the total number, are at the cost level.

Cardano (ADA) is a blockchain platform that enables smart contract functionality and also has a native cryptocurrency, ADA. The current market value of ADA, like most cryptocurrencies, is extremely volatile and can fluctuate greatly within a short period of time. The data provided by IntoTheBlock suggests that the majority of ADA holders have bought into the cryptocurrency at a higher price than its current market value.

The fact that 80% of current-holding addresses are incurring losses can be seen as a sign that a significant number of investors purchased ADA at a higher price point in recent months, as the price of the cryptocurrency reached its peak in late February. Further supporting this interpretation is the fact that only 16% of current-holding addresses are in profit, which suggests that there may have been a large influx of new investors during the recent price surge.

The data also shows that a small percentage of coin holding addresses, representing only 4% of the total number, have not lost or profited from their investment in ADA as they purchased the cryptocurrency at the current market value. This indicates that part of the ADA community is composed of long-term, committed investors who remain unaffected by the short-term fluctuations of its market value.

In summary, the data suggests that a significant number of ADA investors may have bought into the cryptocurrency at a higher price point during the recent price surge, and are now incurring losses. However, a smaller, dedicated group of ADA holders have not profited or lost from their investment, indicating their commitment to the long-term success of the cryptocurrency.