According to on-chain data, here’s how the profit-holder ratio differs between Dogecoin (DOGE), Shiba Inu (SHIB), and other memecoins.
Dogecoin has the highest profitability ratio among major memecoins.
In new mail Market intelligence platform IntoTheBlock spoke on X about how major memecoins compare to each other in terms of profitability for their holders.
As the name suggests, “Profit Holders” is an on-chain indicator that tracks the percentage of investors who are currently holding some unrealized net profits.
This metric works by reviewing the transaction history of each address on the blockchain to find the average price it received for its coins. This price naturally corresponds to the cost basis.
If the current spot cryptocurrency price is higher than this cost basis for any address, then that particular holder can be considered profitable. Profitable cryptocurrency holders aggregate all of these addresses and calculate what portion they make up of the total user base.
Now, here’s what the value of five meme coins looks like in terms of earnings: Dogecoin, Shiba Inu, PEPE, FLOKI, and MOG.
Looks like DOGE is at the top of the list at the moment | Source: IntoTheBlock on X
As you can see above, 72.75% of Dogecoin’s user base is currently profitable, which is the highest percentage among the memecoins on this list. Floki comes in second with 70.42%, and Mog Coin comes in third with 61.48%.
Interestingly, Shiba Inu and Baby, the two largest meme coins in the sector after Doge, are the last two on this list. The former has 46% of its holders in profit, while the latter has 56%.
The SHIB index looks particularly bleak, given that it doesn’t have even half of its investors in the green. However, historically, a low value for the index has been a bullish sign for any cryptocurrency.
This is because the holders of winning stocks are more likely to participate in the selling. When a large percentage of investors are winning, the probability of a mass profit-taking event increases and thus a top may become more likely to form.
When there are not many profitable addresses, selling can become exhausted, causing the price to bottom out. In this view, Shiba Inu may be in the best place among these meme coins.
As for Bitcoin’s profitability, CryptoQuant author Axel Adler Jr. shared the data on X mail.
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 the previous metric in IntoTheBlock, which tracks the percentage of supply that is profitable rather than holders of the coin. About 75% of all Bitcoin in circulation is profitable.
Dodge price
At the time of writing, Dogecoin is trading at around $0.101, down almost 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 by Dall-E, CryptoQuant.com, IntoTheBlock.com, chart by TradingView.com