header banner
Default

If this occurs, Cardano (ADA) might require immediate restructuring


Table of Contents

Cardano (ADA) becomes most strained mid-cap coin in relation to its on-chain profitability

Cardano (ADA) May Need Urgent Restructuring If This Happens

Cover image via www.freepik.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Cardano (ADA) as a proof-of-stake (PoS) protocol is quickly becoming unattractive as an investment asset due to its falling profitability. Data from the crypto analytics platform IntoTheBlock (ITB) pegs the number of wallet addresses in loss on the Cardano blockchain at 94.13%, the second poorest in the top 15 of capitalized coins after Polygon.

This outlook implies that as many as 4.19 million addresses on Cardano are in losses. This figure leaves only 174.84K addresses in gains, which pales when compared to its top rivals like Solana (SOL) and Ethereum (ETH).

Cardano is an actively developing blockchain network and has hit a number of impressive milestones based on its total developer Commits on GitHub. This impressive activity has not translated into actual growth for the coin, judging by its on-chain profitability and price action.

At the time of writing, Cardano is changing hands at a price of $0.2458, up by 0.17% in the past 24 hours. This mild growth is a facade as ADA is still down by more than 92% from its all-time high (ATH), and while Bitcoin is up by more than 70% year-to-date (YTD), Cardano has printed a 0.74% loss in the same time span.

Potential remedy: Burning?

VIDEO: Cardano Update: What’s Next? ADA Price Prediction & Risks!!
Coin Bureau

Judging by use case, Cardano is outstanding and can compete with its peers. However, the attractiveness of the token, fueled by slowing demand, has dropped since the start of the year. This calls for a potential restructuring of its tokenomics that can help turn the coin into a deflationary one.

Cardano's current circulating supply is pegged at 35.218 billion ADA, a figure that compares with just 21 million for Bitcoin. With reducing demand, it becomes logical to explore burning, a feature that many other protocols like Shiba Inu, Ethereum and Binance Coin (BNB), among others, are exploring to date.

About the author

Godfrey Benjamin

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on Blockchain.news, Cryptonews and Coingape, among others.

Advertisement

TopCryptoNewsinYourMailbox

TopCryptoNewsinYourMailbox

Sources


Article information

Author: Elizabeth Johnson

Last Updated: 1704590882

Views: 727

Rating: 4.4 / 5 (90 voted)

Reviews: 82% of readers found this page helpful

Author information

Name: Elizabeth Johnson

Birthday: 1920-06-08

Address: 5357 Stevens Junction, Jenniferburgh, IN 00613

Phone: +4651385701193755

Job: Air Traffic Controller

Hobby: Bird Watching, Arduino, Billiards, Raspberry Pi, Motorcycling, Wine Tasting, Coffee Roasting

Introduction: My name is Elizabeth Johnson, I am a valuable, striking, intrepid, radiant, dazzling, treasured, resolved person who loves writing and wants to share my knowledge and understanding with you.