Analyzing ADA
3 min read
NOTE: Not a financial advice, just analyzing data. All of the data I have collected was from IntoTheBlock.
As of today, ADA has a $ 8,598,092,384 market cap which puts it on #8 spot on CoinMarketCap.
All time low is at $0.01735 while all time high is at $3.10 which makes a +16477% gain.
There are in total 4,443 million addresses that hold ADA (we can’t count all the cold wallet addresses, so the number is higher). But for the addresses that we can count here is the data:
175.05k Addresses which is 3.94% are in PROFITS
4.2m Addresses which is 94.52% are in a LOSS
68.45k Addresses which is 1.54% are at BREAK EVEN
Pie chart of addresses in profits, loss and break even.
On the bottom graph, you can see the percentage of accounts in profit and in loss over time in correlation with the price. Naturally, at the start, the majority were in profit, and the same held true during the bull run. However, as the bull market came to an end, the numbers quickly shifted, leaving us where we are now, with only 3.94% of accounts in profit. We can also see less spikes up to 100% than in other alts such as MATIC (bottom graph, added graph for comparison).
Number of addresses in profits and loss through the years (ADA).
Number of addresses in profits and loss through the years (MATIC).
We can observe, that the number of accounts that have purchased ADA and still have it in their account, has been steadily increasing ever since the beginning of the bull run, and this trend continues even during the bear market. This may suggest that people are placing their hopes on ADA to perform well in the next bull market. (Please note that this is not a financial advice; I’m just analyzing the data.)
Number of addresses with balance through the years.
Continuing with a graph that shows how long has a token been held for on average. ADA has an average holding period of 10.5 months out of the 6.1 years the token has been in circulation, resulting in a ratio of 0.1438. This ratio appears relatively low when compared to other coins like MATIC, which boasts a ratio of 0.2444, and LINK, which has a ratio of 0.2131. (Note that a higher ratio indicates a longer average token holding period.)
The following pie chart shows the concentration of Cardano. So, concentration is a helpful metric to estimate how decentralized/concentrated a crypto-asset is. In general, it is preferable for a crypto-asset to be held mostly by retail addresses as this points to a decentralized network with widespread adoption. Additionally, there are risks involved if a crypto-asset is highly concentrated among whales and investors addresses. We can see that ADA has really hit a very high number of retail volume and this is almost 69% (NICEEE), which is pretty impressive and it shows how decentralized should coins really be.
As you can imagine, during the bear market, the number of Hodlers (addresses that have held the coin for 1+ year) has grown and has even overtaken the Cruisers (addresses that have held the coin for 1-12 months). This could also be interpreted as a sign that people are placing their hope in ADA for the next bull market.
Number of Hodlers, Cruisers and Traders through the years.
The next graph shows two categories: “All Time Highers,” which are addresses with a balance that bought within 20% of the token’s all-time high (ATH) price, and “All Time Lowers,” which are addresses with a balance that bought within 20% of the token’s all-time low (ATL) price.
The latest data shows that there are 70k addresses that belong in the ATH category and 16,48k addresses that belong in the ATL category. Which is kind of a small gap compared to other coins. Other things look the same as in other coins; ATL peaked at the start and ATH peaked at bull run.
Number of “All Time Highers” and “All Time Lowers” through the years.
This is a table that show the distribution of the tokens:
This is the end of my analysis hope you enjoyed and that it was somewhat useful.
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