Ethereum profitability falls to 2-year low as price corrects below $2,000

Ethereum, like the rest of the crypto market, has been in a downtrend. This has seen the value of the cryptocurrency plummet below $2,000 and attempts to recover above this major resistance level have been futile. Naturally, the decline in the value of digital assets has affected their profitability. As a result, ethereum wallets profiting at current prices have now fallen to two-year lows.

Ethereum profitability drops

Ethereum is still the second-largest cryptocurrency by market cap, but when it comes to profitability, it tells another story. The data shows that the percentage of profitable ETH wallets has dropped significantly over the past few months. Aside from prices, most of the decline in profitability has occurred in the past six months.

Related reading | Sentiment Dangerously Negative as Crypto Fear Index Drops to Two-Year Low

into the block It shows that only 56% of Ethereum investors are currently profitable. This leaves a total loss of 43%, while only 1% of investors are in the neutral zone, meaning they bought their tokens at the current price.

data from glass node This metric is supported, although it gives a slightly higher percentage of the number of addresses in profit. Data aggregation tools show that 58% of ETH investors are still profitable. However, this number is worth noting that the last time Ethereum’s profitability was this low was two years ago, in July 2020.

ETH price trading at $1,781 | Source: ETHUSD on TradingView.com

It is no coincidence that most of the winners are investors who have been in the market for more than a year. The long-term outlook for smart contract networks has been in favor of followers over the short-term.

Small wallet upgrade

Even after the downtrend rocking the digital asset, the support remains undiminished. Smaller investors continue to pay homage to Ethereum. This is evidenced by the number of wallets holding at least 0.01 ETH reaching an all-time high. It is now at a new record of 22,874,566 addresses.

The metric hit multiple all-time highs in the first two quarters of 2022 alone. It shows renewed interest from smaller investors, but unless that interest becomes apparent among the largest ETH investors, there may not be any significant change in value.

Related reading | Bitcoin dominance remains high as market sell-off resolves

As for the price of the digital asset, the price of Ethereum is down more than 60% from its all-time high in November. It currently trades at $1,770 and has a market cap of $213.9 billion.it still is The largest DeFi platform with over $67 billion in TVL.

Featured image from Coingape, chart from TradingView.com

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