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Recent analysis from Santiment reveals a robust upward trend in cryptocurrency markets, with Bitcoin leading the pack. The supply-in-profit metric, a key indicator of market health, shows that 89.9% of Bitcoin’s supply is currently profitable, outpacing other major cryptocurrencies. This compares to 84.0% for Ethereum, 77.0% for XRPLedger, 78.2% for Chainlink, 76.7% for Dogecoin, and 51.9% for Cardano. This metric is essential as it indicates that most holders acquired their assets at lower prices, suggesting strong continued investor confidence, particularly during the bull market from October 2023 to March 2024.
Experts suggest keeping a close watch on cryptocurrencies like Cardano and Dogecoin, where a lower percentage of supply in profit could hint at potential undervaluation. Such indicators, especially when paired with other metrics like whale accumulation and the Market Value to Realized Value (MVRV) ratio, provide valuable insights for investors looking to capitalize on market dynamics. As the market evolves, these metrics serve as a crucial guide for strategic investment decisions.
