Santiment has provided insights into the profitability of major cryptocurrencies like XRP, Bitcoin, and Dogecoin based on their supply in profit.

XRP, Dogecoin, and Other Cryptocurrencies Analyzed for Profitability

In a recent post on X, on-chain analytics firm Santiment examined the profitability of various top cryptocurrencies by looking at their "Supply in Profit."

The "Supply in Profit" indicator measures the percentage of an asset's circulating supply that is currently in a net unrealized profit. Unlike other versions of this metric that compare the spot price against the last transfer price, Santiment uses the price at which the token was initially mined as the cost basis.

Understanding the Supply in Profit Indicator

For Santiment’s indicator, tokens mined at a higher price than the current price are considered in loss, while those mined at a lower price are considered in profit. The Supply in Profit sums up all tokens that meet the latter condition and calculates the percentage of the total circulating supply they represent.

Current Trends in Major Cryptocurrencies

Here is a comparison of the Supply in Profit for some leading cryptocurrencies over the past few months:

- **Bitcoin (BTC): 98.3%

- Ethereum (ETH): 95.1%

- Dogecoin (DOGE): 82.16%

- XRP (XRP): 78.84%

- Cardano (ADA): 53.5%

Bitcoin and Ethereum have the highest percentages, indicating that nearly all their supply is mined below the current spot price. Cardano has the lowest percentage, suggesting more of its supply is in loss.

Specific Insights on Polygon (MATIC)

A user inquired about Polygon (MATIC), and Santiment revealed that only 35% of its supply is in profit. This lower percentage might be due to MATIC's introduction during the 2019 bear market, starting with a disadvantage.

Implications of the Supply in Profit Metric

A higher supply in profit suggests a higher likelihood of selloffs, potentially indicating a local top. Conversely, assets with lower profitability, like XRP and Dogecoin, may have more growth potential before significant profit-taking occurs.

Current XRP Price

As of now, XRP is trading around $0.52, up 1% over the past week.