Are Your Crypto Assets in Profit?
As the broader crypto market experiences a recent rally, it’s essential to assess whether the circulating supply of your cryptocurrencies is currently in profit. Market intelligence platform Santiment has provided insights into the long-term investment profitability of various digital assets, highlighting which ones are leading the pack in terms of financial gains. Let’s delve into the details to see if your crypto investments are in the green.
Calculating Profitability of Crypto Assets
Understanding the percentage of a cryptocurrency’s supply in profit involves considering its current value compared to its initial worth when it was first introduced on the blockchain. This calculation helps determine the profitability of holding onto a specific digital asset. For example:
- A Bitcoin mined at $60,000 would be profitable if BTC is currently trading at $71,290.
- Conversely, a Bitcoin mined at $73,000 would not be in profit if the current value of BTC is lower than that amount.
Using this methodology, Santiment found that:
- 98.3% of the circulating supply of Bitcoin is currently in profit.
- ETH has 95.1% of its circulating supply in profit.
Crypto Assets in Profit
Let’s take a closer look at the profitability of some major cryptocurrencies:
- Bitcoin (BTC): 98.3% of circulating supply in profit, trading at $71,290.
- Ethereum (ETH): 95.1% of circulating supply in profit, changing hands at $3,811.
- Chainlink (LINK): 86.8% in profit, priced at $17.53.
- Dogecoin (DOGE): 82.2% in profit, valued at $0.15.
- Ripple (XRP): Over half of the supply (53.5%) in profit, trading at $0.52.
- Cardano (ADA): 78.8% of circulating tokens in profit, priced at $0.48.
MATIC Struggles with Profitability
Despite the overall positive trend in the market, some cryptocurrencies face challenges in profitability:
- Polygon’s MATIC: Only 35% of the circulating supply in profit, currently priced at $0.71.
The low profitability of MATIC can be attributed to its introduction during the 2019 bear cycle, putting it at a disadvantage compared to other assets. While the network has seen significant development and user adoption, the digital asset’s profitability remains relatively low.
Stay Informed About Your Investments
It’s crucial to stay informed about the profitability of your crypto investments to make well-informed decisions. By tracking the circulating supply of each digital asset in your portfolio and comparing it to its current market value, you can gauge the success of your investment strategy and identify opportunities for growth.
Hot Take: Maximizing Profit Potential in Crypto
As the crypto market continues to evolve, it’s essential to monitor the profitability of your investments to maximize your profit potential. By staying informed about the circulating supply of digital assets and their current market value, you can make strategic decisions to capitalize on opportunities in the ever-changing crypto landscape. Take control of your investments and position yourself for success in the world of digital assets.
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