Along with other crypto markets, Ethereum is in a downward trend. The cryptocurrency’s value has fallen below $2,000, and attempts to rebound above that major resistance level proved futile. The decline in value has had a negative impact on its profitability. This has led to Ethereum wallets, which were profitable at present prices, falling to a two year low.
Ethereum Profitability Drops
Ethereum continues to be the second largest cryptocurrency according to market cap, however it is not profitable. According to data, the number of ETH wallets in profit has decreased significantly over the past few months. Most of the profit decline, in addition to the drop in price, has occurred within the last six-months.
Related reading: Market Sentiment Dangerously Negative as Crypto Fear Index Falls To A Two-Year Low| Market Sentiment Dangerously Negative As Crypto Fear Index Drops To Two-Year Low
IntoTheBlock shows only 56% percent of Ethereum investors currently are making a profit. This leaves 43% of investors in loss, while only 1% are in neutral. Investors purchased tokens at current price.
From GlassnodeThis metric supports it, although it places the profit percentage at slightly more addresses. Data aggregation tools show that 58% are still profitable as ETH investors. This figure shows that Ethereum profitability has been at its lowest point in almost 2 years, which was July 2020.
Source: ETHUSD on TradingView.com| Source: ETHUSD on TradingView.com
The majority of profit-earning investors have been around for over a year. Long-term prospects for smart contracts have always been better for those who follow it than those who do not.
Small Wallets Ramp UP
Even with the decline in the price of the digital asset it is still supported. Even though the market has been down, smaller investors continue to invest in Ethereum. The increasing number of wallets that hold at least 0.01 Ethereum has proven this. This record now stands at 22,874,566 addresses.
View metric:https://t.co/XXb0u19ouH pic.twitter.com/gYKCAAlgcZ
— glassnode alerts (@glassnodealerts) May 27, 2022
The metric has reached new heights during the first half of 2022. This metric shows renewed interest by smaller investors. However, unless the interest is evident amongst the largest ETH investors there will not likely be significant changes in its value.
Similar Reading: Bitcoin dominance remains high despite market sell-offs| Bitcoin Dominance Remains High As Market Sell-Offs Settle
As for the price of the digital asset, Ethereum’s price is down more than 60% from its all-time high in November. At $1770, it has a market value of $213.9billion. With more than $67 billion in TVL, it is still the biggest DeFi platform.
Featured Image from Coingape. Chart by TradingView.com
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