ETH Token Profit: Current Number and Future Prospects

In the context of the (growth cycle )growth cycle( of the cryptocurrency market, many types of altcoins such as Solana and XRP have shone with mature growth symbols. However, Ethereum - the 'king of altcoins' - has failed to meet expectations, as the price of ETH has dropped significantly over the past year. This has led many ETH investors to fall into a 'drowning' state )drowning( according to on-chain data, while raising the question: what is the profitability of the current ETH tokens and what are the prospects for the future?

1. Token Profit Index: Two Important Metrics According to a report from Santiment - one of the leading on-chain analytics services - there are two key metrics used to evaluate the 'profitability' of the ETH token: Total profit token ) Total profit supply (: This is the total number of tokens accumulated during the trading process when the purchase price is lower than the current price. Specifically, all ETH purchase transactions are calculated based on the transaction price at that time and compared to the current price of the token. If the current price is higher, the token will be counted in the 'profit supply'. Percentage of total profit ) Percentage of profit supply (: This index reflects the percentage of the total circulating ETH supply that private investors have made a profit on, meaning these tokens were purchased at a price lower than the current price ). This index shows the market's psychological health as well as the extent of selling pressure from buying advisors at high prices.
2. ETH situation: Notable number The report from Santiment shared on the X ( platform before was Twitter) on August 2, in the context of the market tending to correct sharply, the number of profitable tokens plus the profit ratio has decreased to a record level: Total profitable tokens: Currently at around 97.7 million tokens, this is the lowest number since April 11, 2024 - the date recorded as 'Trump's victory day' in the US presidential election. Profitable total supply ratio: Only reaches about 65.5%, a sharp decrease from 97.5% at the beginning of December. This is the lowest level recorded since February 10, 2024. These figures show that the value has been continuously declining since the high price of about $4,016 in mid-December, with most previous ETH purchases becoming unprofitable. This means that many investors are facing pressure from buying at a higher price than the current market price.
3. Causes and Effects The sharp decline in ETH token profits can be addressed by a number of factors: Selling pressure from 'FUD' and retail traders: The spread of negative news (FUD - Fear, Uncertainty, Doubt) and Panic Psychology has led to many token holders selling off their tokens. This has contributed to driving down the profitability of tokens, as selling occurs at a lower price than the initial purchase price. The effect from the restraint of (HODLers): Despite a large amount of tokens being 'underwater', the market is still dominated by the restraint of HODLers. They often buy and hold ETH for a long time, not greatly affected by the short-term volatility. This has created a 'strong support' for ETH, helping to reduce selling pressure and potentially provide recovery when the market stabilizes. Pressure from other altcoins: When some altcoins such as Solana and XRP record outstanding growth, ETH faces pressure as it cannot generate similar growth. Competition from other altcoins leads investors to shift their investments, contributing to weakening the value of ETH and reducing token profitability.
4. Future Prospect: Opportunity for Hoi Event Although the current data is not very likely, there are signs that ETH may have a chance to recover: Reducing selling pressure: When most retail traders and FUD-affected individuals leave the market, the selling pressure will gradually decrease. This sets the stage for a stable period, which can potentially facilitate the recovery of ETH price.Long-term community strength: Long-term investors - those who believe in the technology and future of Ethereum - always maintain their positions, creating a price support 'floor'. When the market stabilizes, the ETH holdings of these investors can become a driving force for price recovery.Application potential and Ethereum network development: With the transition to Ethereum 2.0, along with the strong development of DeFi, NFT, and smart contracts, Ethereum's infrastructure continues to be highly regarded. This could generate a new wave of investment, bringing value and improving token profitability.
5. Conclusion Data on the Santiment chain shows that currently only about 65.5% of the total ETH is 'profitable', with a total of 97.7 million tokens being profitable - the lowest level in months. This event reflects the selling pressure from retail and FUD investors, as well as the intense competition from other altcoins. However, with the support of long-term advisors and the continuous development of Ethereum technology, the market still has the potential to recover after stabilizing. In the ever-changing context of the cryptocurrency market, advisors need to carefully consider the balance between risk and potential. Smart and deep understanding of the data on the chain can help them make the clearest decisions in any full swing.