XRP, Solana, and Dogecoin Witness Decline in Holder Profitability Despite Market Recovery

The cryptocurrency market experienced a 2.1% increase in total market capitalization in the past 24 hours. However, this positive trend hasn't been reflected in the profitability of some major altcoins. On-chain data reveals a decline in profitability for holders of XRP, Solana (SOL), and Dogecoin (DOGE), despite broader market gains.

Glassnode data shows a significant decrease in the "Percent Supply in Profit" metric for these assets. This metric measures the percentage of tokens held above their acquisition price. The decline indicates a decrease in the number of profitable holders.

Specifically:

• XRP's "Percent Supply in Profit" dropped by 5.22% over the past month, leaving 81.5% of holders in profit.
• Dogecoin's "Percent Supply in Profit" decreased to 53.6%.
• Solana's "Percent Supply in Profit" fell to 35.2%.

This drop in profitability correlates with recent price declines: XRP fell 12%, Solana dropped 9.4%, and Dogecoin declined 12.6% over the past week. This downward price pressure directly impacts the "Percent Supply in Profit" metric.

While the "Percent Supply in Profit" is a lagging indicator and doesn't predict future price movements, it offers insight into market sentiment. Bull markets typically see over 90% of the supply in profit. The current figures for XRP, SOL, and DOGE fall below this threshold, suggesting a cautious market outlook.

Conversely, TON and BNB show contrasting investor sentiment. Glassnode data indicates that over 94% and 86% of TON and BNB holders, respectively, remain profitable.

This analysis is based on data from Glassnode.