Whales continue to accumulate Cardana (ADA) instead of Shiba ınu (SHIB) despite the rather declining profitability. This may be because a series of upgrades planned for June is the door.
Whales turn to high-potential altcoin project instead of SHIB
Strong start to 2022 for Cardano and its network cryptocurrency ADA, ignited by more than 54% gains in March, among all participants It has raised hopes that ADA has finally broken the long-term downtrend and may finally come around. However, this did not happen as the profitability of the 8th largest cryptocurrency remained below 20%.
What does profitability tell us?
The profitability of a cryptocurrency is a powerful indicator that allows us to evaluate the performance of an asset as an investment tool because it shows the rate of return of previous investors.
The profitability metric can also be used as a signal generator for “overbought” and “oversold” conditions. When the profitability of a cryptocurrency reaches or exceeds 90%, investors are more likely to make a profit. Thus causing a string of liquidations and an uptrend reversal. On the other hand, when an altcoin’s profitability is very low, new investors are more likely to land, as investors who have suffered big losses are less willing to sell at the bottom. This could trigger upward price movements.
Cardano’s rough journey
Despite being one of the most established projects in the market, Cardano failed to maintain its popularity among individual and institutional investors as it fell asleep during the bull run that took place between September and November. Despite a sluggish performance in the final months of 2021, it was the most actively growing cryptocurrency on the market in August when the smart contracts technology was announced. Cardano’s latest achievement is the launch of a number of DeFi projects and solutions that are steadily expanding the use of the network, and hence, the ADA price is using these developments as a catalyst. As
Kriptokoin.com, Cardano architecture director John Woods shared the current status of the Vasil hard fork, which is expected to be released in June, in a recent Youtube broadcast. Cardano founder Charles Hoskinson says pipelining is in preparation, which will allow the network to grow to the point where input validators can be added.
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