Bitcoin, Dogecoin Top Holder Profitability Ahead Of Cardano & Ethereum: Details

On-Chain Data Reveals Bitcoin and Dogecoin as Most Profitable Investments

Holder Profitability Rankings Among Major Layer-1 Networks

In a recent analysis published on X, IntoTheBlock, a market intelligence platform, examined the profitability of holders across leading layer-1 networks.

Holder Profitability: A Metric of Investment Returns

Holder profitability measures the percentage of investors or addresses on a cryptocurrency network that are currently holding unrealized gains. This metric is calculated by analyzing the transaction history of each address on the blockchain to determine the average price at which coins were acquired. If this average cost basis is lower than the current spot price, the investor is considered to be in profit.

Top Six Cryptocurrencies Ranked by Holder Profitability

The following table presents the holder profitability rankings for six major cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Cardano (ADA), Avalanche (AVAX), and Tron (TRX).

Bitcoin and Dogecoin Lead the Pack

As the table shows, Bitcoin currently holds the top spot in terms of holder profitability, with 86% of its addresses in profit. Tron follows closely with 85%, while Dogecoin ranks third with 83%.

Bull Market Boost for Profitability

High levels of profitability, as seen in Bitcoin and Dogecoin, are not uncommon during bull markets. Profitability can reach even higher extremes during such periods. However, it's important to note that extreme profitability levels have historically been associated with market tops.

Cardano's Low Profitability: A Potential Positive Sign

Conversely, low levels of profitability, such as those observed in Cardano (and to some extent, Avalanche), may indicate potential for a rebound. Historically, market bottoms have occurred when a low percentage of investors are in profit.

Bitcoin Price Retreat

Despite its high profitability, Bitcoin's price has retraced its recent gains, falling back towards $63,200.

Conclusion

On-chain data suggests that Bitcoin and Dogecoin are currently the most profitable investments among major layer-1 networks. While high profitability can indicate market strength, it's important to monitor for signs of extreme levels that may foreshadow a market correction. Cardano's low profitability, on the other hand, may be a positive indicator for a potential price rebound.