Comparison of Shiba Inu and Pepe to Dogecoin in terms of profit made by holders 😊

Understanding Memecoin Holders’ Profitability

In a recent analysis by market intelligence platform IntoTheBlock, the profitability of major memecoins has been compared to determine the percentage of holders in profit. This key metric, known as “holders in profit,” tracks the portion of investors currently holding unrealized profit in their wallets.

The indicator analyzes the transaction history of each address on the blockchain to identify the average price at which the coins were acquired, known as the cost basis. If the current spot price of the cryptocurrency exceeds this cost basis for any address, the holder is considered to be in profit. The sum of all such addresses provides insights into the overall user base profitability.

Here, we delve into the profitability percentages of five popular memecoins: Dogecoin, Shiba Inu, Pepe, Floki, and Mog Coin.

Memecoin Holders’ Profitability Breakdown

Among the memecoins analyzed, Dogecoin stands out with 72.75% of its user base currently holding profits.
Floki follows closely with 70.42% of its holders in profit, securing the second position.
Mog Coin ranks third with 61.48% of its user base enjoying profitability.
Contrastingly, Shiba Inu and Pepe, two prominent memecoins, have lower percentages of holders in profit, with 46% and 56%, respectively.

This trend indicates that despite their market dominance, Shiba Inu and Pepe lag behind Dogecoin in terms of user base profitability.

The Significance of Profitability Indicators

While Shiba Inu’s lower percentage of profitable holders may seem concerning, historically, this metric has shown a bullish signal for cryptocurrencies. A lower percentage implies a potential decrease in sell-offs, indicating a possible price floor.

Conversely, a high percentage of holders in profit may lead to mass profit-taking events, increasing the likelihood of a market top. In this context, Shiba Inu’s current position might be advantageous compared to other memecoins.

Bitcoin’s Profitability Landscape

According to data shared by CryptoQuant author Axel Adler Jr, approximately 75% of the total Bitcoin supply is currently in profit, as illustrated in a recent post.

This metric differs from the holders in profit indicator, focusing on the percentage of the circulating Bitcoin supply that is currently profitable rather than individual wallet holders.