2023-05-31 16:01:19
Data from IntoTheBlock, one of the blockchain analysis companies according to a 71% of Cardano addresses, approximately 3.1 million addresses, currently hold the smart contract platform’s native token, ADA, at a loss. This means that these addresses bought the coin at a higher price than the current market price. At the time of writing, one token is trading at $0.375, which is even showing a downward trend.
Cardano’s price does not reflect the popularity of the ecosystem
Currently, only one in four Cardano addresses bought their tokens below the current market price. And the number of Cardano token holders in profit also decreases as the exchange rate decreases. However, even though the price of the cryptocurrency is weakening, the adoption of the Cardano network continues to expand and grow. As DefiLlama data shows, the total amount locked (TVL) in Cardano’s DeFi ecosystem reached an all-time high when it recently crossed 446 million ADA. This also means that Cardano’s system is an attractive option for various projects. Unsurprisingly, the growth engine is DeFi protocols. These allow users to engage in all kinds of financial activities, i.e. lend, borrow, and “farm” dividends, without having to relinquish control of their capital.
Cardano therefore attracts quite a lot of new DeFi projects with its scalability, so the total locked amount also increases. THE the most popular DeFi project now on Cardano is Minswap, which accounts for nearly 40% of the total locked amount. And it is likely that as distrust towards traditional banking systems grows, the popularity of Cardano’s DeFi solutions will also grow. However, the question for many holders is still when this popularity and growth will finally be reflected in the exchange rate. Because it is probable that a significant part of the above-mentioned 71% of ADA holders also wants to make a profit with their tokens.
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