As the coin reaches a new milestone, its market performance is still far from perfect
The Cardano network reached another milestone as the number of open wallets on the blockchain reached 3.5 million, according to on-chain data from Messari.
As the website suggests, 3,494,888 million wallets are currently registered on the network, which means that during the next week, the number of wallets will most likely exceed 3.5 million.
But while there are nearly four million wallets on the network, only a small portion of these entities remain active. According to Messari, only 136,800 wallets are active. Such a small number of active wallets suggests that the majority of Cardano users simply hold the cryptocurrency instead of actively using it.
As for the holder distribution on the network, the largest group of wallets owns from $1 worth to $100 worth of Cardano. The number of whales on the network that own more than $10 million worth of coins equals 393 wallets, which is considered insignificant.
The dominance of retail traders and investors over the coin network makes it more unstable and usually causes an increase in selling pressure amid short-term price increases. This happens because the majority of loss-making holders would rather sell at break-even than wait to make profits in the future.
As the In/Out of the Money indicator on IntoTheBlock suggests, Cardano remains one of the least profitable assets on the cryptocurrency network with less than 6% of all ADA holders making profits from their investments.
Such a low rate of return is due to the price action of the asset, which has remained volatile since the ATH hit in August. Since then, the cryptocurrency has lost around 72% of its value.
