According to on-chain data, here’s how the percentage of holders making profits differs between Dogecoin (DOGE), Shiba Inu (SHIB), and other memecoins.
Dogecoin has the highest profitability ratio among major memecoins
In a new article on X, market intelligence platform IntoTheBlock explained how major memecoins compare to each other when it comes to holders in profit.
As the name suggests, “Profit Holder” is an on-chain indicator that tracks the percentage of investors who are currently earning a net unrealized profit.
This metric works by going through the transaction history of each address on the blockchain to find the average price it received for its coins. This price would naturally correspond to its cost basis.
If the spot price of the cryptocurrency is currently higher than this base price for an address, then that particular holder can be considered to be in profit. Beneficial holders add up all of these addresses and calculate the share of the total user base they represent.
Now here’s what the holders’ value of profits looks like for five memecoins: Dogecoin, Shiba Inu, Pepe (PEPE), Floki (FLOKI), and Mog Coin (MOG).
Looks like DOGE is at the top of the list at the moment | Source: IntoTheBlock on X
As seen above, Dogecoin currently has 72.75% of its user base holding profits, the highest number of any memecoin on this list. Floki is second with 70.42%, and Mog Coin is third with 61.48%.
Interestingly, Shiba Inu and Pepe, the largest memecoins in the industry after DOGE, are the last two on this list. The former generates 46% of its holders’ profits, while the latter generates 56%.
SHIB looks particularly gloomy, given that not even half of its investors are in the green. Historically, however, a low value of the indicator has been a bullish sign for any cryptocurrency.
This is because profit holders are more likely to participate in the sell-off. When a large percentage of investors take profits, the chances of massive profit-taking increase, which increases the likelihood of a top forming.
When there are not many addresses generating profits, selling can reach a state of exhaustion, leading the price to find a floor. From this perspective, Shiba Inu is perhaps the best placed among these memecoins.
As for Bitcoin’s profitability, CryptoQuant author Axel Adler Jr shared the data in an X article.
The trend in the BTC supply in profit over the past few years | Source: @AxelAdlerJr on X
Note that the metric displayed in the chart is different from IntoTheBlock’s, as it tracks the percentage of supply that is in profit rather than holders. Roughly 75% of all bitcoins in circulation are generating profits.
DOGE Price
At the time of writing, Dogecoin is hovering around $0.101, down nearly 3% over the past seven days.
The price of the coin appears to have been stagnant during the last few days | Source: DOGEUSD on TradingView
Featured image by Dall-E, CryptoQuant.com, IntoTheBlock.com, chart by TradingView.com
