Hold on to your hats, crypto enthusiasts! While the broader crypto market has shown signs of bouncing back, a deep dive into the numbers reveals a less rosy picture for many Cardano (ADA) and Shiba Inu (SHIB) investors. New research has surfaced, and it might sting a little if you’re holding these popular tokens.
The Stark Reality for ADA Holders: Majority Still Underwater
Let’s talk Cardano (ADA). It’s been a hot topic, known for its ambitious goals and dedicated community. Recently, ADA saw a promising surge, jumping nearly 29% from a low of $0.74 to around $0.95. Sounds like good news, right? Well, not entirely.
Crypto intelligence firm IntoTheBlock crunched the numbers to see who’s actually benefiting from this price movement. They analyzed wallets holding ADA, calculated the average purchase price, and compared it to the current market value. The findings? A significant portion of ADA holders are still facing losses.
Here’s the breakdown:
- Out of the Money (Losses): A staggering 84% of ADA holders are currently in the red. This means they bought ADA at a higher price than it’s currently trading.
- In the Money (Profit): Only a small fraction, 12% of ADA holders, are seeing profits on their investments.
- Breakeven: A mere 4% are sitting at breakeven, neither gaining nor losing.
In simple terms, despite the recent price pump, the vast majority of ADA investors are still waiting for their investments to turn profitable. This highlights the volatile nature of crypto and the importance of understanding market dynamics.
| ADA Holder Status | Percentage |
| Out of the Money (Losses) | 84% |
| In the Money (Profit) | 12% |
| Breakeven | 4% |
Shiba Inu (SHIB): A Similar Story of Losses
What about the meme-coin turned crypto contender, Shiba Inu (SHIB)? SHIB, known for its vibrant community and ‘Dogecoin killer’ aspirations, also experienced a price increase, climbing about 30% from its seven-day low to around $0.000027.
However, IntoTheBlock’s analysis reveals a similar trend to ADA. A significant portion of SHIB holders are still in the loss zone.
Let’s break down the profitability for SHIB holders:
- Out of the Money (Losses): Over half, 55% of SHIB holders, are currently experiencing losses.
- In the Money (Profit): A smaller 39% of SHIB holders are in profit.
- Breakeven: Around 7% of SHIB holders are at the breakeven point.
While SHIB has a slightly larger percentage of holders in profit compared to ADA, the majority are still waiting for their investments to become profitable. This underscores the high-risk, high-reward nature often associated with meme coins and the broader crypto market.
| SHIB Holder Status | Percentage |
| Out of the Money (Losses) | 55% |
| In the Money (Profit) | 39% |
| Breakeven | 7% |
How Do Other Cryptos Compare? MANA, DOGE, and ETH in the Spotlight
The IntoTheBlock research didn’t just stop at ADA and SHIB. They also looked at the profitability of holders for other popular cryptocurrencies, offering a broader perspective on the market landscape.
Decentraland (MANA): Navigating the Metaverse
For Decentraland’s virtual world token, MANA, the picture is more balanced:
- In the Money (Profit): 47% of MANA holders are currently in profit.
- Out of the Money (Losses): 42% of MANA holders are experiencing losses.
- Breakeven: The remaining holders are near the breakeven point.
MANA’s holder profitability is more evenly distributed compared to ADA and SHIB, suggesting a potentially different investor profile or market entry points.
Dogecoin (DOGE): Still Riding the Meme Wave?
Surprisingly, Dogecoin (DOGE), the original meme coin, shows a higher percentage of holders in profit:
- In the Money (Profit): A solid 51% of DOGE holders are currently in profit.
- Out of the Money (Losses): 43% of DOGE holders are in the red.
- Breakeven: 6% are at the breakeven point.
Despite its meme-coin origins, DOGE appears to have a significant base of holders who are currently seeing gains. This could be attributed to early adoption or strategic entry points for a portion of its investor base.
Ethereum (ETH): The King of Smart Contracts Remains Profitable
Ethereum (ETH), the leading smart contract platform, boasts the highest profitability among the cryptocurrencies analyzed:
- In the Money (Profit): A whopping 73% of ETH holders are in profit.
- Out of the Money (Losses): Only 23% of ETH holders are currently experiencing losses.
- Breakeven: A small 4% are at the breakeven point.
Ethereum’s strong profitability likely reflects its established position in the crypto ecosystem, its diverse use cases, and potentially a larger proportion of long-term investors.
| Cryptocurrency | % Holders in Profit | % Holders in Loss | % Holders Breakeven |
|---|---|---|---|
| Cardano (ADA) | 12% | 84% | 4% |
| Shiba Inu (SHIB) | 39% | 55% | 7% |
| Decentraland (MANA) | 47% | 42% | 11% |
| Dogecoin (DOGE) | 51% | 43% | 6% |
| Ethereum (ETH) | 73% | 23% | 4% |
Bitcoin (BTC) Profitability: The Missing Piece
Interestingly, the IntoTheBlock data doesn’t include Bitcoin (BTC) holder profitability. Bitcoin, as the oldest and most dominant cryptocurrency, often sets the overall market trend. Data on BTC profitability would provide a more complete picture of the current crypto investment landscape. We’ll be keeping an eye out for updates on Bitcoin profitability to add to this analysis.
Key Takeaways for Crypto Investors
So, what does this data mean for you as a crypto investor, especially if you’re holding ADA or SHIB?
- Market Recovery is Uneven: While the market might be showing signs of recovery, profitability is not uniform across all cryptocurrencies. Some tokens are lagging behind.
- ADA and SHIB Holders Need Patience: If you’re holding ADA or SHIB and currently in the red, you’re not alone. The majority of holders are in the same boat. Patience and a long-term perspective might be required.
- Diversification Matters: The data highlights the importance of diversification. Ethereum, with its high profitability, contrasts sharply with ADA and SHIB. A diversified portfolio can help mitigate risk.
- DYOR (Do Your Own Research): Always conduct thorough research before investing in any cryptocurrency. Understand the token’s fundamentals, market dynamics, and risk factors.
- Profitability Varies Widely: Profitability can vary significantly between different cryptocurrencies. Factors like market cycles, token utility, community support, and broader economic conditions all play a role.
In Conclusion: Navigating the Crypto Waters
The crypto market remains a dynamic and often unpredictable space. While recent market upticks are encouraging, it’s crucial to look beyond the surface and understand the nuances of holder profitability. The data from IntoTheBlock serves as a valuable reminder that investing in cryptocurrencies comes with inherent risks, and profitability can vary significantly across different tokens. For ADA and SHIB holders, the message is clear: while the market shows promise, a significant portion are still on the path to profitability. Staying informed, being patient, and making strategic investment decisions are key to navigating these crypto waters successfully.
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Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.