Cardano’s ADA recent surge in price, boasting a commendable 30% increase over the last month, has failed to bring relief to the majority of its holders. Although the market observed a notable uptick in profit-taking activity, the data from IntoTheBlock reveals a stark reality for ADA investors.
Contrary to the positive scenario witnessed in leading Layer 1 (L1) networks like Bitcoin (BTC) and Ethereum (ETH), where over 60% of holders are currently in profit, only 35% of ADA holders find themselves in a similar situation. During October’s broader market rally, ADA’s value experienced a 16% ascent, reaching a price level last seen in August. Despite this, a substantial 65% of ADA holders are still underwater, facing losses from their initial investments.
The recent surge, driving ADA’s price up by over 30% in the last 30 days, was a notable development. However, this positive momentum was insufficient to offset the losses incurred by those who had purchased the token at higher prices.
Data from IntoTheBlock underscores that a significant portion of ADA coins, totaling 7.19 billion, were acquired at the $0.38 price point. Despite the recent rise to $0.37, traders who entered the market at higher levels continue to grapple with losses.
Taking a closer look at ADA’s Market Value to Realized Value (MVRV) ratio on a 30-day moving average, it becomes evident that the recent surge did little to change the overall landscape. The MVRV ratio, measuring the relationship between ADA’s current market price and the average acquisition price of every coin or token, has remained consistently negative.
Having slipped into negative territory in December 2021, ADA’s MVRV has continued to hover below zero throughout 2022 and into the current year. This trend implies that every investor who has sold ADA since then has experienced some degree of losses.
While the recent uptrend initiated by the price hike offered a glimmer of hope, ADA’s MVRV still lingers at -48.62% at the time of writing. This suggests that selling at the current price of $0.37 would result in an average loss of 48% for investors.
