Over 70% of Cardano ($ADA) Addresses Are Sitting on Losses, Despite DeFi Growth

A significant 71% of all Cardano (ADA) addresses, or around 3.12 million, are currently underwater on their holdings in the smart contract platform’s native token, meaning the value they acquired the tokens for is above current market prices.

According to data from blockchain market intelligence firm IntoTheBlock, with Cardano trading at around $.0379 per token, only around 26.4% of Cardano addresses are in the green, meaning 1.16 million addresses purchased below current market prices.

The firm’s data also shows that just over 100,000 addresses, or 2.46% of all ADA addresses, are breaking even at current prices. While the cryptocurrency’s price has been relatively muted, the network’s adoption has kept on growing over time.

As CryptoGlobe reported, the total value locked in Cardano’s DeFi ecosystem has soared to over 446 million ADA, marking a new all-time high, according to data from DeFiLlama. This surge in TVL is a testament to the growing popularity and trust in Cardano’s ecosystem as more protocols come online.

This growth is largely driven by the emergence of decentralized finance (DeFi) protocols on Cardano. These protocols allow users to participate in various financial activities, such as lending, borrowing, and yield farming, without giving up custody of their funds.

Cardano’s scalable and secure infrastructure has drawn many DeFi projects, enriching the platform’s ecosystem and boosting its TVL. Minswap, for example, remains the top TVL on Cardano with a 36% dominance.

Cardano’s TVL rose partly due to people looking for alternatives to the conventional banking system and centralized exchanges. Many users have moved towards decentralized options, as they are worried about privacy, security, and control, with Cardano having become a popular choice among them.

Memecoin’s have also played a role in Cardano’s growth. SNEK, a memecoin rooted in its ecosystem, recently saw its price rise by more than 200% in a leap that took place predominantly over the weekend, a time generally characterized by reduced trading volume.

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