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Is Cardano Undervalued? Insights from Key Profitability Metrics and Crypto Staking Implications

Analyzing Cardano's market position and staking prospects

With the cryptocurrency market in constant flux, Cardano emerges as a potentially undervalued asset, according to recent profitability metrics.

Key takeaways:

  • Cardano's supply-in-profit percentage indicates possible undervaluation.
  • Comparative analysis with other major cryptocurrencies suggests ADA could be poised for a price rebound.

Cardano (ADA), ranked as the 10th largest cryptocurrency by market capitalization, is drawing attention with its unique market indicators. A key metric suggesting possible undervaluation is the "percentage of supply in profit," which measures the ratio of ADA currently being held at a profit compared to its acquisition price. 

This metric is particularly telling; while bull markets often inflate these ratios, a moderate percentage can indicate that an asset is undervalued during quieter market periods. According to on-chain analytics firm Santiment, Cardano's supply-in-profit stands at 51.9%, notably lower than its counterparts such as Bitcoin at 89.9% and Ethereum at 84%.

Cardano's strategic market outlook

This lower supply-in-profit percentage might signal a brewing comeback for ADA's market price, especially in comparison to other major cryptocurrencies. Santiment's recent analysis highlighted this, suggesting that assets like Cardano, with lower percentages in profit, could be undervalued. Currently, Cardano's price is down 3% in the last 24 hours at $0.453 and has decreased by 6.52% over the past week. Despite these dips and being 85.38% below its all-time high of $3.10, reached on September 2, 2021, the underlying data might hint at a potential reversal.

Adding to the complexity, IntoTheBlock's analysis shows that only 35% of ADA holders are currently in profit, further underscoring the potential for undervaluation. Whether this metric represents an opportunity for investors or a cautionary tale remains to be seen, but the data certainly makes Cardano a cryptocurrency to keep an eye on.

Is it a good time to stake ADA? 

Cardano's potentially undervalued state, as suggested by its low supply-in-profit, could present a compelling entry point for investors seeking to earn passive income. CryptoStake's user-friendly platform allows you to start staking ADA with a minimal commitment of just 10 ADA. 

Furthermore, CryptoStake's flexible staking feature enables you to unstake your ADA at any time, providing you with greater control over your investment strategy. This combination of low entry, passive rewards, and flexibility makes Cardano staking on CryptoStake an attractive option given that the coin is traded below its fair value.