Comparing XRP, Dogecoin, And Other Assets Based On Profitability
Learn how top cryptocurrencies like XRP, Bitcoin, and Dogecoin stack up in terms of supply profitability according to Santiment.
The Concept of Supply in Profit
Santiment’s Supply in Profit metric tracks the total percentage of a cryptocurrency’s supply in circulation that currently holds a net unrealized profit. Unlike other analytics firms, which determine profit or loss based on spot prices, Santiment uses the token’s initial mining price as the cost basis.
Interpreting Supply in Profit Data
Assets mined below the current price are classified as in profit, while those mined above are in loss. The metric calculates the percentage of the total circulating supply that falls under the profitable category.
Analysis of Top Coins
- Cardano (ADA) has 53.5% of its tokens in profit.
- XRP (XRP) follows at 78.84%.
- Dogecoin (DOGE) stands at 82.16%.
- Bitcoin (BTC) and Ethereum (ETH) lead with 98.3% and 95.1% profit supply, respectively.
Impact of Profitability on Market Performance
The metric can signal potential sell-offs for highly profitable assets, indicating a possible local peak. Conversely, coins with lower profitability, like XRP and Dogecoin, may have more growth potential before facing significant profit-taking pressures.
XRP Market Update
As of now, XRP is trading around $0.52, showing a 1% increase over the past week.
The Significance of Supply in Profit
Understanding how different cryptocurrencies compare in terms of supply profitability can provide insights into potential market trends and investor sentiment.
Potential Market Implications
- High profitability may indicate a nearing sell-off.
- Assets with lower profitability may have room for further growth.
Hot Take: Analyzing Supply Profitability for Cryptocurrencies
Santiment has revealed how major cryptocurrencies like XRP, Bitcoin, and Dogecoin currently compare regarding supply profitability.
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