According to on-chain data, here’s how the percentage of holders in profit differs between Dogecoin (DOGE), Shiba Inu (SHIB), and other meme coins.
Dogecoin Has The Highest Profitability Ratio Among Major Meme Coins
In a new post on X, market intelligence platform IntoTheBlock has talked about how the major meme coins compare against each other regarding the holders in profit.
Here are the top memecoins by percentage of holders currently in profit👇 pic.twitter.com/GxFJ2qngcC
— IntoTheBlock (@intotheblock) August 15, 2024
As its name suggests, the “holders in profit” is an on-chain indicator that keeps track of the percentage of investors who are carrying some net unrealized profit right now.
This metric works by going through the transaction history of each address on the blockchain to find the average price it received for its coins. This price would naturally correspond to its cost basis.
If the cryptocurrency’s spot price is currently greater than this cost basis for any address, then that particular holder can be considered to be in profit. The holders in profit sum up all such addresses and calculate what part of the total user base they make up for.
Now, here is what the value of the holders in profit looks like for five meme coins: Dogecoin, Shiba Inu, Pepe (PEPE), Floki (FLOKI), and Mog Coin (MOG).
As is visible above, Dogecoin currently has 72.75% of its user base holding profits, the most out of the meme coins on this list, Floki is second with 70.42%, and Mog Coin is third with 61.48%.
Interestingly, Shiba Inu and Pepe, the largest meme coins in the sector after DOGE, are the bottom two on this list. The former has 46% of its holders in profit, while the latter has 56%.
SHIB especially appears grim, given that it doesn’t even have half its investors in the green. Historically, though, a low value on the indicator has been a bullish sign for any cryptocurrency.
This is because the holders in profit are more likely to participate in selling. When a large percentage of the investors are in gains, the chances of a mass profit-taking event increase, so a top can become more likely to form.
When there aren’t many addresses carrying profits, selling can reach a state of exhaustion, thus leading to the price finding a bottom. In this view, Shiba Inu may be in the best spot out of these meme coins.
As for Bitcoin’s profitability, CryptoQuant author Axel Adler Jr has shared the data in an X post.
25% of the total available Bitcoin supply was purchased at the price level of $73-58K.
This represents a quarter of the total Bitcoin market capitalization, approximately $300 billion. pic.twitter.com/JakdIv0QFZ
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) August 16, 2024
Note that the metric shown in the chart is different from the earlier IntoTheBlock one, as it keeps track of the percentage of the supply that’s in profit instead of the holders. Around 75% of all Bitcoin in circulation is carrying gains.
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