- The crypto market has shown significant rally as a large percentage of circulating supply is in profit.
- According to market intelligence platform Santiment, Bitcoin (BTC) and Ethereum (ETH) are leading in terms of long-term investment profitability, outperforming other assets like Chainlink (LINK), Dogecoin (DOGE), Ripple (XRP), and Cardano (ADA).
- “Bitcoin and Ethereum currently hold the highest percentages of their circulating supply in profit, suggesting strong long-term investment value,” according to Santiment.
Discover how Bitcoin and Ethereum dominate in terms of long-term investment profitability as the broader crypto market experiences a rally. Stay informed with our latest in-depth analysis.
Crypto Assets in Profit
Crypto asset profitability is determined by comparing the current value of a cryptocurrency to its value when initially introduced to the blockchain.
For example, Santiment explains that a Bitcoin mined at a height of $60,000 remains profitable at the current price of $71,290. Conversely, a coin mined at $73,000 would incur a loss if the Bitcoin price is lower.
Using this method, Santiment found an impressive 98.3% of circulating Bitcoins are in profit, meaning a stark 1.7% are at a loss.
Following closely, 95.1% of Ethereum’s circulating supply is profitable. According to CoinMarketCap, ETH traded at $3,811 during the analysis. Other notable mentions include Chainlink and Dogecoin, with 86.8% and 82.2% profitability, respectively, trading at $17.53 and $0.15.
Ripple (XRP) and Cardano (ADA) also showed commendable figures, with 78.8% and 53.5% of their supplies in profit, respectively. At press time, XRP traded at $0.52, while ADA was valued at $0.48.
MATIC Sees Low Profitability
While BTC and ETH boast impressive profitability, Polygon’s MATIC struggles with only 35% of its supply in profit. This discrepancy is attributed to MATIC’s launch during the bear market of 2019, according to Santiment.
Santiment notes that MATIC’s challenging market entry has continued to impact its profitability despite the network’s user growth and development. At the time of writing, MATIC was valued at $0.71, reflecting a 10% decline over the past year.
Conclusion
In conclusion, Bitcoin and Ethereum continue to lead the pack in investment profitability, offering substantial returns for long-term holders. Most other major cryptocurrencies also show positive signs, though assets like MATIC highlight the complexities of timing and market conditions. Investors should stay informed and cautious, as market dynamics continue to evolve.
