Bitcoin Leads Crypto Profitability as XRP Struggles with Margins

• Santiment has highlighted the current supply profitability of major cryptocurrencies like XRP, Bitcoin, and Dogecoin.
• These insights come from Santiment’s analysis, which follows a unique methodology for calculating profitability.
• The data reveals interesting trends and potential implications for the future of these digital assets.

Discover the latest analysis on the profitability of leading cryptocurrencies and its potential impact on market trends.

XRP, Bitcoin, and Dogecoin: Profitability Analysis and Comparisons

In a recent post, Santiment delved into the profitability of top cryptocurrencies by examining the “Supply in Profit” metric. This indicator measures the percentage of an asset’s circulating supply that is currently in unrealized profit.

The Unique Methodology of Santiment’s Profitability Metric

Unlike other profitability indicators, Santiment’s version calculates profit based on the initial mining price of the tokens rather than their last transfer price on the blockchain. According to this approach, tokens mined at prices lower than the current market value are considered profitable, while those mined at higher prices are not.

Current Trends in Supply Profitability for Leading Cryptocurrencies

The most recent data from Santiment’s analysis places Bitcoin at the top, with 98.3% of its supply currently profitable. Ethereum follows closely with 95.1%. Meanwhile, Cardano trails at the bottom with only 53.5% of its tokens in profit, reflecting significant variations among these digital currencies.

The Implications of High Supply Profitability

Santiment stresses that a high percentage of supply in profit could indicate a higher likelihood of sell-offs, as profit-takers might decide to cash in. Therefore, assets like Bitcoin and Ethereum, which have high profitability ratios, might be closer to a potential local top than those with lower profitability percentages like XRP or Dogecoin, which may still have room to grow.

The Situation with Polygon (MATIC)

Responding to user inquiries, Santiment provided insights into Polygon’s profitability, showing that only 35% of MATIC supply is in profit. This lower figure is attributed to its introduction during the 2019 bear market, signifying that it started with a significant disadvantage in this metric.

Conclusion

Overall, the Supply in Profit metric offers a vital insight into the profitability landscape of major cryptocurrencies. As we observe these trends, it’s crucial to consider the potential implications of high profitability ratios on market dynamics and future price movements.