Cardano is one of the most widely held and hyped assets in the crypto arena these days. Its $77 billion USD market cap trails only Bitcoin and Ethereum in terms of size. With a high profile founder that delivers regular public updates, the impressive stakeholder network Cardano has built through the years (map pasted below), and its recent 'Alonzo' hardfork which introduced smart contract functionality, expectations for ADA are sky high. I thought this might be a good time to run it through the time series tool I'm building to get a better feel for its historic performance.
1. Returns by month: We don't have a lot of data here but over the last few years, September has been one of the weaker months with November and December being the strongest.
2. % of time each month has yielded a positive return: April, May, and December have all had strong hit rates. So far, September has been bad every year.
3. Looking at its drawdowns, it clearly had a bit of a nuclear winter that lasted quite a while.
4. And finally- running it through my StratVal tool, which looks at its risk adjusted performance relative to its own history, its engine is definitely on the warm side, though off its recent high with this latest drawdown. There's nothing that says it has to go all the way back down though as it could bounce around this level for a while. As a reminder, I use this as a tool to help me from buying things that could be on the verge of getting cheaper.
5. Stakeholder Map- This is pretty impressive!
As always, this is not investment advice or a recommendation to buy or sell. The data comes from sources I believe to be reliable but there are no guarantees. Just sharing for educational purposes so please do your own homework!