Dogecoin, XRP Supply in Profit Drops 5.2%, 46.4%
1min read On-chain data has revealed that Dogecoin and XRP have experienced the most significant declines in Supply in Profit among major cryptocurrencies. The Supply in Profit indicator tracks the percentage of a digital asset's total circulating supply that is held at a net unrealized profit. This metric is determined by analyzing the transaction history of each coin to see if the previous transfer value was less than the current spot price, indicating that the coin is currently in profit.
The Supply in Profit adds up all coins of this type and determines what part of the supply they make up. Conversely, the Supply in Loss considers the supply of the opposite type, which can be calculated by subtracting the Supply in Profit from 100%.
Ask Aime: What do the significant declines in Supply in Profit for Dogecoin and XRP mean for their long-term value prospects?
According to the on-chain analytics firm Glassnode, the trend in the 7-day simple moving average (SMA) of the Supply in Profit for eight cryptocurrencies over the last few months shows that Toncoin (TON) and BNB (BNB) have seen significant increases in this metric. TON has seen an additional 23.8% of the supply enter profit, bringing the total to 94.1%, while BNB has seen a rise of 17.4%, putting the metric at 86.3%.
On the other hand, Dogecoin (DOGE), XRP (XRP), and Solana (SOL) have registered notable decreases in the Supply in Profit indicator. XRP has seen another 5.2% of its supply fall into a loss, taking the total Supply in Profit to 81.5%. Dogecoin has experienced an almost double-digit decrease in the metric, but a majority of its coins are still in profit as the indicator sits at 53.6%.
Solana has seen a decline of just 4.4%, but only 35.2% of its supply is currently holding a gain. This development may not be entirely negative for SOL, as profit-sellers often impede bullish moves. When there aren't many investors left in profit, the price tends to bottom out, suggesting that Solana and Dogecoin could be near a rebound.
At the time of writing, Dogecoin is trading around $0.173, down more than 11% over the last week. This decline in the Supply in Profit for Dogecoin and XRP indicates that a significant portion of their supply is no longer in profit, which could potentially impact their market dynamics and investor sentiment.
