Santiment released investor profit data following the recent price surge.
Bitcoin, Ethereum, and XRP lead in profitability rates.
Blockchain analytics company Santiment recently announced data showing that the majority of the supply of many major cryptocurrencies is currently in a profitable state.
Specifically, 94.5% of the Bitcoin (BTC) supply is currently profitable, followed by Ethereum (ETH) at 88.7%, and XRP at 65.1%.
Other coins like Dogecoin (64.7%) and Chainlink (59.4%) also recorded quite high profitability, while Cardano (ADA) is only at 46.5%.
Market sentiment is bullish, but the risk of short-term profit-taking is also present.
According to Santiment, this figure reflects the percentage of the circulating supply that is profitable compared to the average purchase price on-chain.
The fact that 19 out of 20 BTC are profitable is a sign of strong market confidence, but it also warns of short-term adjustment risks.
The company stated that the ability to take profits increases as many investors achieve significant returns, which could put downward pressure in the near future.
Could ADA be undervalued, an opportunity for long-term investors?
In contrast to other coins, Cardano (ADA) shows that only 46.5% of the supply is profitable, meaning that more than half of investors are still at a loss.
Santiment believes this indicates that the current price is not attractive enough for the majority of holders, but it could also be a sign that ADA is undervalued – a potential opportunity for long-term investors.
