Cardano Is Falling Behind Bitcoin and Ethereum, Leaving Traders in the Dark
Journalist
Posted:
- Cardano transactions are less profitable than Bitcoin or Ethereum.
- As daily sales decrease, the price of ADA may increase.
AskFX discovered that Cardano is Cardano. [ADA] The price increase in the last few days has not changed much on the network.
We observed from the on-chain data provided by Santiment that the profit-loss ratio of ADA transactions was negative. This was in contrast to what Bitcoin [BTC] and Ethereum [ETH] had.
The ratio between profit and loss of transactions on the chain shows how profitable or unprofitable transfers are. If the ratio is positive, it means more traders are making profits.
A negative ratio means that losses exceed profits. This was the case with ADA.
The past is chasing you
At the time of publication, Ethereum’s return on capital ratio was 2. Bitcoin’s was 1.8. Cardano was completely different. The metric for his network was -0.38.
Source: Santiment
This decline can be mainly attributed to ADA’s performance in 2023. Cardano recorded a price increase of 29.78% in the past 30 days.
ADA suffered in the first quarters of 2023 as Bitcoin and Ethereum prices rose. The 365-day performance of BTC and ETH exceeded that of ADA.
Cardano’s state could change if it maintains the momentum of the last few weeks. The most recent criticism of the project and its token has been related to its performance.
AskFX reported that the token’s value could be huge as the altcoins season begins.
If the price rises towards $0.70, more ADA transactions could be profitable. If the price falls below $0.62, on-chain ADA transactions could suffer losses.
It is important to consider other aspects of the Cardano network. We viewed ADA distribution as a critical area.
The time for ADA has not yet expired
The number of tokens used for transactions in a certain period of time is called the circulation. Cardano’s daily circulation was 144.42 million copies at the time of publication.
This price drop could be beneficial for ADA holders. The high circulation would have meant pressure to sell.
The decline in circulation also suggested that selling pressure may be low in the future. If so, ADA could gain more and the $1 price prediction could be possible in the short to medium term.
On-chain data showed that the number of holders has changed. According to Santiment, the number of ADA holders fell from 4.49 million to 4.48 million.
This difference may seem negligible to some, but was evidence that some holders were liquidating their Cardano portfolio.
Source: Santiment
Is your portfolio green? Calculate your ADA profits
Despite this decline, it cannot be concluded that confidence in ADA has been undermined. Some participants may have changed their mind about ADA and switched to another token.
But in the end, ADA could provide relief to holders who had to endure a 91.74% decline from its peak.
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