As an experienced analyst, I find Santiment’s latest analysis on the profitability of major cryptocurrencies, specifically XRP, Dogecoin, and other top coins, to be quite intriguing. The Supply in Profit metric, as explained by Santiment, provides valuable insights into the current market situation.
As a researcher studying the current market trends of various cryptocurrencies, I can share that according to Santiment’s latest findings, the profitability of holding major coins such as XRP, Bitcoin, and Dogecoin varies significantly in terms of supply. The specific details of these comparisons remain to be explored further in my ongoing research.
XRP, Dogecoin, And Other Assets Compared On Basis Of Profitability
In their latest update on platform X, cryptocurrency analysis firm Santiment shares insights into the current supply profit positions of the leading digital assets within the crypto market.
As a crypto investor, I closely monitor the “Profitable Supply Ratio” of an asset. This metric indicates the proportion of its entire circulating supply that is currently generating a net profit.
As a researcher studying cryptocurrency analytics, I’ve noticed that some firms calculate the profit or loss of a coin based on the difference between the current spot price and the last transaction price on the blockchain. However, Santiment approaches this metric differently. Instead of using the last transaction price, they consider the initial mining price as the “cost basis” for evaluating profits or losses.
Using this approach, I identify each token’s mining cost price. If the current market price is lower than the cost price, then those tokens are in a loss position. Conversely, if the market price is higher than the cost price, those tokens are in profit.
As a researcher, I would explain that the Supply in Profit represents the collection of coins meeting certain conditions. Subsequently, this quantity is calculated as a proportion of the entire circulating supply.
Here is a chart illustrating the recent developments in the supply and profit trends for some of the major coins in the cryptocurrency market over the last few months.
According to the graph, Cardano (ADA) ranks as the least profitable top coin with only around 53.5% of its tokens currently generating profits.
Among all the cryptocurrencies, XRP (XRP) ranks second to last with 78.84% of its supply not submerged, while Dogecoin (DOGE) comes just above it at 82.16%. In contrast, Bitcoin (BTC) and Ethereum (ETH) perform significantly better, with 98.3% and 95.1% of their supplies being above water, respectively.
As a researcher examining the cryptocurrency market, I’ve discovered an intriguing observation. The two largest coins by market capitalization have almost all of their total supplies mined and are currently trading below their respective market prices.
At the post bearing the label X, a query was posed to Santiment concerning Polygon (MATIC) and its current status. In response, Santiment provided a clear illustration in the form of a chart, highlighting that approximately three-quarters of MATIC’s total supply are currently generating profits according to the specified metric.
In simpler terms, Polygon’s performance in this specific measurement falls short when compared to Cardano, XRP, and Dogecoin. Santiment adds that the reason behind this may be attributed to MATIC entering the market during the 2019 bear trend, which gave it a disadvantageous start.
In simpler terms, when it comes to cryptocurrencies, a larger supply of profit often indicates a greater chance for a price drop due to increased selling among investors.
In simpler terms, there’s a good chance that highly profitable coins could be reaching a local peak. On the contrary, assets with lower profitability metrics, such as XRP or Dogecoin, might still have potential for greater gains before encountering substantial selling pressure.
XRP Price
At the time of writing, XRP is floating around $0.52, up 1% over the past week.
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2024-06-08 01:11