Recent on-chain data reveals that Dogecoin and XRP have been experiencing the most significant declines in profitability among the major cryptocurrencies.
In the past month, Dogecoin and XRP have faced noticeable reductions in their profitability.
Glassnode, a well-known on-chain analytics firm, recently shared insights on X about the latest trends in the Supply in Profit for major cryptocurrencies.
The term “Supply in Profit” refers to the percentage of a digital asset’s total circulating supply that’s currently held at a net unrealized profit.
This metric determines profitability by examining each coin’s transaction history on the network to identify the price at its last movement. If the last transfer price was lower than the current market price, the coin is deemed profitable.
The Supply in Profit sums up all such coins to understand their share of the total supply. Conversely, the Supply in Loss metric considers coins in the opposite category. You can also find the Supply in Loss by subtracting the Supply in Profit from 100%, as the total must equal 100%.
Below is a chart provided by the analytics company, showcasing the trends of the 7-day simple moving average (SMA) for the Supply in Profit across eight cryptocurrencies in recent months.
Recent trends indicate that Toncoin (TON) and Binance Coin (BNB) have made significant strides in profitability. Specifically, in the last 30 days, Toncoin’s supply in profit rose by 23.8%, bringing it to an impressive 94.1%. Likewise, BNB saw a 17.4% increase, reaching 86.3%.
On the flip side, Dogecoin (DOGE), XRP (XRP), and Solana (SOL) recorded substantial declines in the metric. Below is another chart highlighting the trends for these specific cryptocurrencies.
XRP’s decline has resulted in another 5.2% of its supply moving into a loss, leaving its total Supply in Profit at 81.5%. Dogecoin experienced an almost double-digit drop, yet most of its tokens remain profitable, with the indicator at 53.6%.
Solana hasn’t fared well either, as its 4.4% decline leaves only 35.2% of its supply in profit. However, this may not entirely be negative for Solana. A lower profit supply can sometimes indicate a market bottom because profit-seeking sellers often hinder price increases. With fewer coins in profit, the potential for a price rebound increases.
Given Solana and Dogecoin’s relatively low levels of profitable supply, their prices might be poised for a recovery soon.
Currently, Dogecoin is trading at about $0.173, marking a decline of over 11% in the past week.
