Dogecoin Spotlight: Key On-chain Metric Flashes Green Despite DOGE's 8% Drop

Cover image via U.Today

Despite a recent 8% price drop, Dogecoin holders remain largely in profit, according to a key on-chain metric.

At the time of writing, DOGE was down 7% in the last 24 hours to $0.1496, mirroring the general sell-off on the markets, which saw Bitcoin plummet below the $64,000 mark.

According to IntoTheBlock data, a key on-chain metric is flashing green, indicating that the majority of DOGE holders remain in profit. The metric reveals that a staggering 83% of Dogecoin holders are currently in profit, highlighting the resilience and confidence of DOGE holders amid market fluctuations.

In a recent post, IntoTheBlock shared a chart that shows the percentage of holders in profit on several top layer-1 networks.

While Bitcoin and TRX have a larger chunk of their holders in profit, Dogecoin and Ethereum remain among the few layer-1 blockchains that also have the vast majority of holders in profit at 83% and 81%, respectively.

The wider crypto market is recording a sell-off, with the majority of cryptocurrencies, especially in the top 100, posting losses between 4% and 20%. Dogecoin was not exempted from the bearish action on the market, plummeting to intraday lows of $0.148 from a prior day high of $0.169.

Amid the price dip, the holder profitability metric has offered a ray of optimism to Dogecoin holders, as it signals that a significant majority of DOGE holders are still in the green.

Presently, Dogecoin holder profitability currently stands at 82%, per IntoTheBlock, a slight drop from the 83% highlighted above.

This suggests that a large portion of Dogecoin holders purchased their DOGE tokens at lower price levels and are currently sitting on profits, even amid the recent market uncertainty. This resilience among Dogecoin holders reflects their strong conviction in the long-term potential of the cryptocurrency and their willingness to weather short-term price fluctuations.

The percentage of long-term holders, which refers to those who have held their coins for more than a year, is currently 65%, per IntoTheBlock data.