u.today 
Recent on-chain data paints a grim picture for Cardano investors, with the average active wallet currently sitting on significant losses.
According to crypto analytics firm Santiment, wallets active on the Cardano network over the past year are currently netting an average return of negative 43%.
This extreme negative Market Value to Realized Value (MVRV) indicates that the asset may have entered a prime "opportunity" or "buy" zone, according to analytics firm Santiment.
A recent regulatory win
The painful price action is particularly notable given that Cardano recently secured a major victory in Washington. On March 17, the U.S. Securities and Exchange Commission (SEC) officially classified $ADA as a digital commodity.
The market has yet to respond favorably despite this long-awaited regulatory clarity.
Cardano's funding rate on Binance is currently seeing its highest ratio of short positions compared to longs since June 2023. Retail traders are clearly betting on further declines.
Heathy TVL growth
At the same time, there are some signs of resilient on-chain adoption within the Cardano ecosystem.
The network's Total Value Locked (TVL), a key metric for measuring decentralized finance (DeFi) activity, is currently sitting at 518.6 million $ADA.
According to the Cardano community hub Cardanians, this represents a healthy 35.7% growth in TVL over the past six months, even in the face of rough broader market conditions.
