Supply-In-Profit Metric Indicates That Cardano Cryptocurrency May Be Undervalued
Cardano (ADA), based on market capitalization holds the 10th spot at the moment, with regards to biggest cryptocurrencies in the world. There are metric indications that ADA is undervalued, in terms of percentage of supply in profit.
This metric is aimed at knowing the proportion of the supply that is at the moment in profit, by making comparison between the price that a unit of a coin was bought or acquired, and the price of the cryptocurrency at the moment.
Based on the analysis made by Santiment, the percentages of supply in profit for some popular cryptocurrencies, such as Bitcoin is 89%, Ethereum is 84%, Ripple is 77%, Cardano is 51.9%, Dogecoin is 76.7%, and Chainlink is 78.2%.
When the percentage of supply in profit is on the high side, it shows that most of the investors holding the cryptocurrency, acquired it when the price was low. From the data analysis, it can be seen that ADA shows a lesser percentage of supply in profits - 51.9%, when compared to the other top cryptocurrencies. This shows that Cardano (ADA) may be remarkably undervalued.
Yes it might actually be undervalue but well we might not be able to say. It can take a sharp turn in the future
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