A recent report from Santiment, a behavior analytics platform, reveals that despite its struggles with price, XRP remains one of the top 5 mainstream assets in terms of profitability. Concerns have been raised about XRP’s inability to surpass the $0.5 mark, leading to hints of stability. Following its decline below $0.6 on April 12, XRP has been unable to regain this crucial price level for over two months, despite occasional price increases seen across the market.
Nevertheless, XRP has managed to hold onto the $0.50 support, showcasing its resilience. However, investors remain anxious due to the lackluster price movements. Interestingly, Santiment’s recent findings show that a majority of XRP’s circulating supply is currently trading at a profit.
Santiment introduced a metric called “Supply in Profit,” which compares the current value of a token to its initial value when it first appeared on the blockchain to determine if it is in profit or loss. According to this metric, Bitcoin (BTC) has the highest percentage of circulating supply in profit, closely followed by Ethereum (ETH) and Chainlink. XRP ranks fifth on this list, boasting a profitability ratio of 78.8% despite experiencing a 15% drop in price this year.
XRP’s high profitability ratio can be attributed to the fact that most of its circulating supply was released at a low price and coincided with token releases during periods of low value. Ripple’s monthly escrow releases of approximately 200 million XRP tokens contribute to this phenomenon. Despite the price decline this year, the tokens released by Ripple in May and June at lower prices are now profitable at the current price of XRP.
It is important to note that this information is for informational purposes only and should not be considered financial advice. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic does not take responsibility for any financial losses incurred.