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ADA Losses

Definition

ADA losses refer to a decrease in the market value of Cardano’s native cryptocurrency, ADA, from an investor’s purchase price. These losses occur when the current trading price of ADA falls below the average cost at which an individual or entity acquired their holdings. Such depreciation can stem from broader market downturns, project-specific news, or shifts in investor sentiment impacting the Cardano ecosystem. Understanding ADA losses is crucial for assessing portfolio performance and market risk in the digital asset space.