Ethereum Profitability Dumps To 2-Year Low As Price Corrects Below $2,000


Ethereum has been in a downtrend along with the rest of the crypto market. This has sent the cryptocurrency dropping below $2000, and efforts to recover above this key resistance level have been futile. Naturally, the decline in the value of the digital asset affected its profitability. What has resulted is that Ethereum wallets that are profitable at current prices have now fallen to their lowest level in two years.

Low profitability of Ethereum

Ethereum remains 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 portfolios has declined significantly in the past two months. Besides price, most of the decline in profitability has occurred in the past six months.

Related reading | Market sentiment is seriously negative as Crypto Fear Index drops to two-year low

IntoTheBlock It shows that only 56% of all Ethereum investors are currently in profit. This puts a total of 43% at a loss while only 1% of all investors are sitting in the neutral territory, which means they have bought their tokens at the current prices.

information from glass It supports this metric though, as it puts the number of titles in profit at a slightly higher percentage. The data aggregator shows that 58% of all ETH investors are still winning. However, what is remarkable about this number is that the last time Ethereum’s profitability was this low was almost two years ago, in July 2020.

Ethereum price chart from TradingView.com

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

It is no coincidence that the majority of those making profits are investors who have been in the market for more than a year. The long-term view of the smart contract network has always favored those who follow it over those who follow it in the short term.

Intensify small portfolios

Even with the downtrend rocking the digital asset, the support has not diminished yet. Small investors continued to throw their hats in the ring with Ethereum. This is evidenced by the increasing number of wallets holding at least 0.01 ETH hitting a new all-time high. He now sets a new record of 22,874,566 titles.

This metric reached an all-time high in the first two quarters of 2022. It is showing renewed interest from smaller investors, but unless such interest is evident in the largest ETH investors, there may not be any significant change in value.

Related reading | Bitcoin dominance remains high as market sell-offs settle

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 is currently trading at $1,770 with a market capitalization of $213.9 billion. Remains Largest DeFi platform with over $67 billion in TVL.

Featured image from Coingape, chart from TradingView.com

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