7 October 2022
As per Santiment's on-chain tracker, Cardano investors have recorded the highest profits since March, when the cryptocurrency price was around the desired $1 level.
According to the platform, the sentiment around the cryptocurrency is rather positive at the moment, with the ADA price gaining 22% in the past three weeks, following the general trend in the crypto market.
The rapid increase of ADA price has led to more traders and investors taking profits off the current rally, which might not be beneficial for the potential continuation of the rally as Cardano desperately needs trading volume and new inflows.
The ratio between profit taking and selling at a loss is currently at a level we have not seen in the last three months, so the network has not been as profitable since March.
Cardano is known for its extremely low profitability caused by the large volume of entries into the coin at around the ATH back in September 2021, when the project just released its own smart contracts technology.
Many investors of the Cardano entering the market at the highest value possible and moving down puts a high percentage of investors at a loss, which causes issues with profitability and a low inflow rate in the future.
According to the data, Cardano's profitability back in March was getting closer to 11%. Mainstream intelligence platforms did not disclose the profitability of the asset when it plunged to $0.4 in July.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice