- Considering the purchases made despite the price drop, the whales still seem optimistic that ADA prices will rise.
Popular cryptocurrency Cardano (ADA)disappointed backers who launched the smart contract functionality on the platform and expected positive price movements following the September 2021 Alonzo upgrade.
In fact, contrary to the expectations of Cardano investors, the cryptocurrency performed worse than the price level above $2 where the smart contract feature was introduced during the time it was introduced.
Many ADA investors suffered losses
Opening the year around $1.3, ADA experienced sharp declines where it fell below $1 many times. At the time of writing, ADA, which is below the $1 level, is changing hands around $0.84. According to cryptocurrency platform Coinecko, the popular altcoin has gained 1.3 percent in the past 24 hours.
Data from cryptocurrency data provider IntoTheBlock paints a pretty clear picture of how badly this massive price drop for the popular coin has hit ADA investors.
According to data from the platform, 88 percent of total ADA holders are currently at a loss, while only 9 percent of Cardano investors have made a profit. In addition, according to IntoTheBlock data, 3 percent of ADA investors are at the breakeven point, that is, neither in profit nor in loss.
With the drop in Cardano’s value recorded in January 2022, the ninth largest cryptocurrency by market cap would need to rise above 50% to reach the price recorded at the start of the year.
Whales still buy Cardano
Despite Cardano’s price movements that have made its investors unhappy, investors still haven’t given up hope on the altcoin as there is so much potential associated with the cryptocurrency.
Many investors, especially whales, continue to increase their position in the asset class and are confident that ADA will rise in the near future.
According to IntoTheBlock data, Cardano whale investors have purchased ADA tokens with a combined valuation of over $18.07 in the past seven days, with all of these transactions totaling over $100,000.
Investors optimistic about Hydra upgrade
The reason Cardano whales have accumulated such a large amount of ADA lately may be that the Hydra upgrade is due by the end of June this year and more decentralized applications (dApps) are expected to be deployed on the network thanks to this upgrade.
If the Hydra upgrade is released, more ADA will be staked across various protocols, causing the price of the cryptocurrency to rise.
According to DefiLlama data, Cardano’s total locked value (TVL) is also performing quite well, standing at over $200 million at the time of writing.
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.