Cardano Faces Challenges as Profitability Declines and Wallets Show Losses


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  • 4 months ago
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Data analysis reveals that 94% of Cardano wallets are in the red due to the declining profitability, impacting the cryptocurrency's appeal.

Data analysis reveals that 94% of Cardano wallets are in the red due to the declining profitability, impacting the cryptocurrency's appeal.

Cardano (ADA), as a Proof-of-Stake (PoS) protocol, has lost some of its appeal due to decreasing profitability. Data from the crypto analysis platform IntoTheBlock (ITB) shows that Cardano blockchain has the second-highest percentage of wallets in the red, at 94.13%, following Polygon among the top 15 capitalized coins. These statistics highlight that approximately 4.19 million Cardano addresses are currently operating at a loss.

A Potential Solution: Burning Tokens? In terms of utility, Cardano remains a leading cryptocurrency, capable of competing with its peers. However, the dwindling demand has led to a decline in the token's attractiveness since the beginning of the year. This situation calls for a potential reconfiguration that could transform the token into a deflationary asset.

Cardano's current circulating supply is determined at 35.218 billion ADA, which is significantly higher than Bitcoin's capped supply of 21 million. As demand diminishes, the concept of token burning, a feature explored by various other protocols like Shiba Inu, Ethereum, and Binance Coin (BNB), is becoming a logical consideration.

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Cardano

You can easily buy Cardano tokens on pancakeswap. 45,000,000,000 of this token were produc...

Price

0,584505470

MarketCap

163,651,980

Total Supply

45,000,000,000
Contract
0x3ee2200efb3400fabb9aacf31297cbdd1d435d47

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