• Cardano, Polygon and Arbitrum holders have emerged as some of the biggest losers.
  • Following the recent crash in these tokens, more than 95% of the investors are facing losses.
  • Institutional investors pulled their investments despite observing inflows earlier in the month.

The crypto market is currently in the hands of the bears as the altcoins, along with Bitcoin, are all facing a decline. Investors are suffering losses across the market, but the ones noting the most amount of lost gains are the ones that put their money and faith in Cardano, Polygon and Arbitrum.

Cardano, Polygon and Arbitrum holders see red

The drawdown observed in the past three weeks has resulted in many altcoins falling to their lowest point year to date. Some came close to registering new 2023 lows. Regardless, profits have been wiped clean for most of the investors, with the holders of Cardano, Polygon and Arbitrum taking the biggest hits.

Since most of the addresses holding ADA, MATIC and ARB bought their supply above the current trading price, they are facing losses. The only problem is that such addresses make up more than 95% of all investors holding some amount of tokens in their wallets.

In general, crashes have been followed by either a period of sideways movement or a quick recovery.

In the case of MATIC, the chance of accumulation at the hands of investors is more likely. Investors holding ARB and ADA can, however, expect further drawdowns as the Market Value to Realized Ratio (MVRV) ratio is yet to reach the opportunity zone. This area is set below a certain point, which historically has led to recovery as investors tend to halt selling and begin accumulating to make the most once recovery begins.

Polygon’s MVRV ratio is already sitting in the opportunity zone below 13%, making it susceptible to a bounce back.

Polygon MVRV ratio

Polygon MVRV ratio

Institutional investors pull back

Nevertheless, since the market is vulnerable to a decline, retail investors might hold back. As is, institutional investors are already pulling their money out, evinced by the $55 million outflows from digital asset products. The week ending August 18 noted skepticism in institutional investors after ending the bearish streak the previous week.

Institutional investors’ holdings

Institutional investors’ holdings

Put simply, the entire market still remains vulnerable to a decline, but of the three biggest loss-bearing assets, Polygon investors have a better shot at recovery. Cardano and Arbitrum holders should still remain cautious.


Like this article? Help us with some feedback by answering this survey:



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP