Cardano is now as profitable as it was in March, according to profit taking on blockchain
According to data shared by sentiment On-chain tracker, Cardano investors are at their highest level of profit taking since March, when the price of the cryptocurrency sat around the desired $1 level.
As the intelligence platform suggests, the sentiment around the cryptocurrency is rather positive at the moment, with the price of ADA gaining 22% in the past three weeks, following the general trend on the crypto market.
With the token price rising sharply, more traders and investors are taking advantage of the current rally, which may not be beneficial for a potential rally to continue as Cardano is in dire need of trading volume and fresh 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’s Profitability Problem
Cardano is notorious for its extremely low profitability due to the large amount of entries in the token around ATH in September 2021, when the project released its smart contract technology.
With most investors of the coin entering the market at the highest value possible, any move 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 last available data, Cardano’s profitability was approaching 11% in March. Mainstream intelligence platforms did not disclose the asset’s profitability when it fell to $0.4 in July.
At press time, Cardano is trading at $0.5 and successfully moving up for the last 35 days, resulting in a 35% price increase.