A report from behavior analytics platform Santiment confirms that XRP ranks among the top 5 mainstream assets with highest profitability despite its price struggles.
The recent disclosure comes amid prevailing concerns around XRP’s inability to breach the $0.5 level, triggering stablecoin teases. Since it collapsed below $0.6 on April 12, XRP has failed to recover the pivotal price threshold for over two months despite occasional price upswings witnessed in the broader market.
However, XRP has retained the $0.50 support, a testament of its resilience, but investor angst has prevailed amid the dull price movements. Interestingly, the recent disclosure from Santiment confirms that most of XRP’s circulating supply is currently trading at a profit.
Santiment’s Supply Profitability Metric
The on-chain analytics resource presented data pertaining to its “Supply in Profit” metric. For the uninitiated, this metric calculates the current value of a token and compares it to its initial value when it first appeared on the blockchain. This metric assesses if that token is currently higher (in profit) or lower (in loss) than its initial price.
Based on this metric, Bitcoin (BTC) has the highest percentage of circulating supply in profit due to it being so close to its all-time high price of $73,000 attained on March 14. For BTC, 98.3% of its circulating supply is in profit, while Ethereum (ETH) comes second, with 95.1% of supply in profit.
💸 Supply in Profit is calculated by summing a token's value vs. its value when it first originated on the blockchain. The percentage of top assets' supply in profit is:
🪙 Bitcoin: 98.3%
🪙 Ethereum: 95.1%
🪙 Chainlink: 86.8%
🪙 Dogecoin: 82.2%
🪙 XRP: 78.8%
🪙 Cardano: 53.5% pic.twitter.com/ptaZVBSr41— Santiment (@santimentfeed) June 6, 2024
Interestingly, Chainlink secures the third spot, boasting a supply profitability rate of 86.8% at its current price above $17. Meanwhile, Dogecoin has a profitability ratio of 82.2%, with its price having increased 78.7% this year. DOGE’s saving grace materialized in March, when it spiked 87.5% to breach multiple resistance points.
XRP Boasts 78% Supply Profitability
The data further indicates that XRP comes fifth on the list, with a profitability ratio of 78.8% despite not performing as well as the other tokens on the list. Notably, at its current price of $0.5226, XRP has dropped 15% this year, making it the only cryptocurrency on this list suffering declines since January.
XRP’s high profitability ratio is possibly due to two factors. One is the fact that most of the circulating supply was released when its price was extremely low. Secondly, token releases have often coincided with low prices, and this is as a result of XRP’s persistently low value.
Notably, XRP has an inflation rate of approximately 200 million tokens a month stemming from Ripple’s escrow releases. This translates to 2.4 billion a year. If each monthly release coincides with a low XRP price, this phenomenon could keep the supply profitability up.
For instance, Ripple released 500 million XRP on May 1, when XRP traded at $0.5020. At the current price of $0.5226, these tokens are currently at a profit. In addition, XRP changed hands at $0.51 when Ripple unlocked 1 billion tokens from escrow on June 1. These tokens are now profitable at the current price.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
