As a seasoned crypto investor with a knack for deciphering market trends and a penchant for memecoins, I find myself intrigued by the latest findings from IntoTheBlock. The data on Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), Floki (FLOKI), and Mog Coin (MOG) is indeed fascinating.
Based on blockchain information, let’s compare the proportion of users making a profit among Dogecoin (DOGE), Shiba Inu (SHIB), and similar meme-based cryptocurrencies.
Dogecoin Has The Highest Profitability Ratio Among Major Memecoins
On their latest update on platform X, IntoTheBlock discusses an interesting comparison between popular meme coins, focusing on which ones have more holders who are currently in profit.
In my research, I’ve been exploring the concept known as “Holders in Profit,” which, as the name implies, monitors the proportion of investors currently holding a net unrealized profit within their assets on the blockchain.
As a seasoned cryptocurrency investor with years of experience under my belt, I’ve come to rely on a specific metric that has proven to be incredibly valuable: analyzing the average price each address on the blockchain received for its coins. This method has helped me accurately determine the cost basis of those coins, which is crucial for making informed decisions about buying and selling. It’s like having a crystal ball into the past transactions, providing me with essential insights to navigate the ever-evolving world of cryptocurrencies.
If a cryptocurrency’s current market price exceeds the initial purchase price (cost basis) for any individual wallet, then those users are in profit. By identifying these profitable wallets and calculating their number among the total user base, we can determine what percentage of the entire user community is currently making a profit on their investments.
Currently, let’s examine how the profitability of their holders is shaping up for these five meme tokens: Dogecoin, Shiba Inu, Pepe (also known as PEPE), Floki (FLOKI), and Mog Coin (MOG).
It can be observed that Dogecoin’s user base holds the highest percentage of profits (72.75%) among the memecoins in this list, followed closely by Floki at 70.42%, and Mog Coin trailing slightly behind with 61.48%.
It’s worth noting that despite being the biggest players in the meme coin market, excluding Dogecoin, Shiba Inu and Pepe are at the bottom of this particular ranking. Interestingly, 46% of Shiba Inu holders are currently making a profit, while an even higher percentage, 56%, of Pepe holders are in the green.
Shiba Inu (SHIB) seems quite bleak at the moment, as only about half of its investors are currently reporting profits. However, historically, a lower reading on this particular indicator has often been a positive sign for any cryptocurrency.
Based on my personal experience as a seasoned investor, I’ve noticed that when a significant number of investors are making profits, it often signals a potential surge in selling activity. This is because those who have already made their gains might choose to cash out, leading to what could be referred to as a “mass profit-taking event.” This phenomenon can increase the likelihood of a market top forming, a situation I’ve encountered several times during my investing journey. Therefore, it’s essential to keep a close eye on such trends and adjust investment strategies accordingly.
As a researcher exploring the cryptocurrency market, I’ve observed that when there are few profitable addresses actively selling, the market can reach a point of saturation, potentially leading to prices bottoming out. Given this perspective, Shiba Inu appears to be in a particularly advantageous position among the meme coins.
As for Bitcoin’s profitability, CryptoQuant author Axel Adler Jr has shared the data in an X post.
Keep in mind that the chart displays a different metric compared to the previous one by IntoTheBlock. Instead of counting the number of holders, it monitors the proportion of the total supply that’s currently generating profits. Approximately three-quarters (75%) of all circulating Bitcoins are yielding gains.
DOGE Price
Currently, Dogecoin stands at approximately $0.101, experiencing a decrease of nearly 3% over the past week.
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2024-08-17 10:12