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Cardano falls behind Bitcoin, Ethereum, leaves traders hanging

3min Read

Despite a 29.87% 30-day increase, ADA is struggling to produce gains for market participants.

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  • Transactions on Cardano were less profitable than Bitcoin and Ethereum.
  • ADA’s price might increase as one-day circulation drops.

AMBCrypto found that Cardano’s [ADA] price increase over the last few days has not exactly changed a lot of things on the network.

Using on-chain data from Santiment, we noticed that the ratio of ADA transactions in profit to loss was negative. However, this was in contrast to what Bitcoin [BTC] and Ethereum [ETH] had.

The ratio of on-chain transactions in profit to loss shows the rate at which transfers are either profitable or otherwise. If the ratio is positive, it means more traders are making gains.

A negative ratio implies that losses are more than profits, and that was the case with ADA.

Hunted by the past

At press time, Ethereum’s profit-to-loss ratio was 2.3. Bitcoin’s own was 1.8. When it came to Cardano’s network, it was an entirely different ball game as the metric was -0.38.

A chart showing Cardano's transaction in losses with Bitcoin and Ethereum in profits

Source: Santiment

This decline could be attributed to ADA’s performance for most of 2023. In the last 30 days, Cardano’s price has increased by 29.78%.

But in the first few quarters of 2023, when Bitcoin and Ethereum prices were rising, ADA struggled. This was why the 365-day performance of BTC and ETH outpaced that of ADA.

If Cardano maintains the momentum it has had over the last few weeks, the condition might change. Recently, the project alongside its token faced criticism because of its performance.

But AMBCrypto also reported that the token’s potential when the altcoin season begins could be massive.

A rise in the $0.70 direction could help more ADA transactions land in profit. But if the price slides below $0.62, ADA on-chain transactions in loss could increase.

However, it is also important to look at other aspects of the Cardano network. One area we considered critical was ADA’s circulation.

ADA’s time is not over

Circulation shows the number of tokens used in transactions within a period. At press time, Cardano’s one-day circulation had decreased to 144.42 million.

About the price action, this decrease could be profitable for ADA holders. This is because high circulation would have implied selling pressure.

Further, the decline in circulation suggested that selling pressure might be low going forward. If this is the case, ADA’s price might gain more, and the $1 prediction could become feasible in the short to mid-term.

However, on-chain data showed that there have been some changes in the holder count. According to Santiment, the total number of ADA holders fell from 4.49 million to 4.48 million.

Though this difference could be considered negligible, it was a testament that some holders had liquidated the Cardano part of their portfolio.

Cardano's decrease in circulation and number of holders

Source: Santiment

Is your portfolio green? Check out the ADA Profit Calculator

Despite the drop, one cannot conclude that confidence in ADA has eroded. In some cases, the participants involved might have switched their convictions to other tokens.

But in the long run, ADA might provide relief for holders who have had to deal with a 91.74% decrease from its all-time high.


Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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