On-chain data reveals that the vast majority of Cardano (ADA) investors are in a loss.
The seventh-largest cryptocurrency by market capitalization, Cardano (ADA), has been one of the hardest hit by bearish market conditions. The price of ADA currently sits at around $0.248. The asset is 92% down from its all-time high of $3.10 recorded in September 2021.
Unsurprisingly, recently published data by crypto analytics platform IntoTheBlock shows that most ADA holders acquired the asset below its current prices.
According to data, 95.69% of ADA investors are currently in the red, apparently remaining hopeful of a trend reversal in the coming months.
On-chain data from @intotheblock shows 95.69% of $ADA holders are currently in the red, creating a tough period for the #Cardano community as prices drop. Will $ADA reach its all-time high (ATH)? Share your thoughts below. #CryptoInsights 💭📉🚀 pic.twitter.com/4CQo1YPKaO
— Crust Bestie |Emmy |🥰 (@Crustbestie) September 12, 2023
Regulatory Uncertainty Impacts ADA Growth
Recall that Cardano (ADA) is one of the top cryptocurrencies classified as a security by the United States Securities and Exchange Commission (SEC) in lawsuits against Binance and Coinbase.
Similar to its impact on related assets, the regulatory development saw ADA record a significant decline. The price of ADA dropped from $0.379 to $0.261 within two weeks after the initial lawsuit against Binance.
The price of Cardano (ADA) has since struggled to recover, albeit riding similar bearish waves as the broader crypto market.
Although a slim hope of recovery has since emerged following Ripple’s victory against the SEC, the pending lawsuits against Binance and Coinbase may have a larger say in Cardano’s long-term price action.
In a related comment, Cardano co-founder Charles Hoskinson recently noted that the project isn’t being targeted by the SEC and only got caught in cross-fire lawsuits.
While in this crossfire, many exchanges delisted ADA. Robinhood, Bakkt, eToro, and Revolut all announced the halt of ADA trading.