Anika Begay
According to on-chain data, here’s how the percentage of profitable holders differs between Dogecoin (DOGE), Shiba Inu (SHIB), and other memecoins.
Dogecoin has the highest profitability ratio among major memecoins
In a new post on X, market intelligence platform IntoTheBlock discusses how the major memecoins compare to each other in terms of who can profit from them.
As the name suggests, “holders in profit” is an on-chain indicator that tracks the percentage of investors who are currently earning an unrealized net profit.
This metric works by examining the transaction history of each address on the blockchain to find the average price received for its coins. This price would naturally correspond to its cost basis.
If the spot price of the cryptocurrency is currently higher than this cost basis for any address, then that particular holder can be considered in profit. In profit holders add up all these addresses and calculate what part of the total user base they represent.
Here is what the profit value looks like for holders of five memecoins: Dogecoin, Shiba Inu, Pepe (PEPE), Floki (FLOKI), and Mog Coin (MOG).
Looks like DOGE is at the top of the list at the moment | Source: IntoTheBlock on X
As you can see above, Dogecoin currently has 72.75% of its user base holding profits, the most among the memecoins on this list. Floki is second with 70.42% and Mog Coin is third with 61.48%.
Interestingly, Shiba Inu and Pepe, the largest memecoins in the industry after DOGE, are the last two on this list. The former has 46% of its holders in profit, while the latter has 56%.
SHIB in particular looks gloomy, as it doesn’t even have half of its investors in the green. Historically, though, a low reading on the indicator has been a bullish signal for any cryptocurrency.
This is because profit holders are more likely to participate in the selling. When a large percentage of investors are in profit, the chances of a mass profit-taking event increase, so a top may become more likely to form.
When there are not many addresses generating profits, selling can reach a state of exhaustion, thus causing the price to find a bottom. From this perspective, Shiba Inu may be in the best place among these memecoins.
Regarding Bitcoin profitability, CryptoQuant author Axel Adler Jr shared the data in a post X.
The trend in the BTC supply in profit over the past few years | Source: @AxelAdlerJr on X
Note that the metric shown in the chart is different from IntoTheBlock’s previous one, as it tracks the percentage of the supply that is in profit rather than holders. About 75% of all Bitcoin in circulation is in profit.
DOGE Price
At the time of writing, Dogecoin is hovering around $0.101, down nearly 3% over the past seven days.
The price of the coin appears to have been stagnant during the last few days | Source: DOGEUSD on TradingView
Featured image from Dall-E, CryptoQuant.com, IntoTheBlock.com, chart from TradingView.com
