Profit from ETH tokens: How much?
Solana and XRP are among the large-cap cryptocurrencies that have shone in this bull cycle. However, Ethereum, the 'king of altcoins', has performed poorly over the past year.
According to on-chain statistics, the current market downturn has caused a large number of ETH investors to incur losses. The lost supply of Ethereum and its potential price impact are outlined below.
Profit from ETH tokens: How much?
Santiment, a leading on-chain analytics service, reported on February 8 on platform X that Ethereum tokens at a loss have been gradually increasing in recent weeks. The measures are 'percentage of total profitable supply' and 'total profitable supply'.
For reference, the measure of 'profitable supply' is created by aggregating all token amounts transferred while the token price is lower. Meanwhile, the 'percentage of total profitable supply' indicator reflects the amount of a cryptocurrency's supply held at prices higher than its purchase price. This indicator compares profitable supply with circulating supply.
Santiment claims that the market value of Ethereum has decreased by 36% from the peak of $4,016 in mid-December. As predicted, this ongoing price decline has reduced the number of profitable ETH tokens since mining.
Santiment reports that profitable Ethereum tokens are at 97.7 million, the lowest since November 4, 2024, when Trump won the US presidential election. The profit ratio of total ETH supply is 65.5%, the lowest since October 2, 2024, and down from 97.5% in early December.
Santiment's post states:
The audience has sharply criticized the number 2 market cap for underperforming compared to other large caps. With too much FUD and traders frequently selling their tokens, the cryptocurrency market may recover after stabilizing.
Resilient long-term holders dominate the market as the supply of profitable tokens decreases at a lower rate. As most 'FUD and retail traders' have sold their tokens, negative pressure has eased and could return.