Revenues in the cryptocurrency market have pulled back sharply recently, but there’s still a profit in the majority of supply with some of the biggest digital assets.
Even so, the foundation for these profits is distinctly shaky now. It’s been a long time since any of us have had to contend with the concept of unrealized losses, yet here we are. Starting off the year, the profits we were sitting on with various tokens were way better in terms of percentage than what we’re looking at now.
Some of the most well-known cryptocurrencies are in a different market dynamic today, with a greater number of holders now underwater as the overall market tries to find its footing again. As the major coins face heightened volatility, it seems more important than ever to dig into just how these assets have performed in the realm of unrealized gains—and what it might mean for the market tomorrow.
Assets Holding Strong in Profit
At the upper end of the range, assets such as TRON ($TRX) and Ripple ($XRP) are still enjoying robust profit margins, notwithstanding recent market hurdles. The newest figures show that 84.6% of the supply of TRX is still in profit. That number, however, is down a bit from where it started the year. In January, we noted that 89.7% of TRX was in profit—a number that was obviously on the high side given where it is now. Still, the roughly -5.6 percentage point (pp) drop in profit for TRX has occurred in a fairly unremarkable way, with the asset staying pretty close to $0.06 throughout the year. The same cannot exactly be said for XRP, which has lost a more pronounced -10.4pp drop in profit since January.
Compared to other large cryptocurrencies, these assets have mostly succeeded in keeping their gains, yet the downward pressure affecting the wider market is apparent. Most holders of these two tokens are still in the green, but the shrinking profit margins are another sign of the kinds of challenges the broader market is facing and the way it’s affecting investor sentiment.
For holders of TRX and XRP, the downturn in profit percentages might suggest a market that is beginning to exhibit some fatigue after very recent vigorous activity. Still, these two cryptocurrencies are relatively strong compared to many others, and investors in them can only hope that stabilization in the overall market allows for some recovery in these digital assets as well.
The Steep Declines: ETH and SOL Suffer Significant Losses
Conversely, Ethereum ($ETH) and Solana ($SOL) are at the other end of the spectrum, suffering the sharpest contractions of unrealized gains among the principal cryptocurrencies. For instance, the supply of ETH currently enjoying profitable positions has plummeted to a mere 44.9%. That 44.9% represents a dramatic year-to-date decline of 39.9 percentage points, from a much healthier position at the beginning of the year. Solana’s supply is now 31.6% in profit, which also corresponds to a mostly unrealized downturn of 46.8 percentage points over the same timeframe.
Despite recent drawdowns, some assets still have the majority of their supply in profit.
On the high end:$TRX: 84.6% of supply in profit (down just -5.6pp YTD)$XRP: 81.6% (down -10.4pp) pic.twitter.com/8Py0Wj7Bye
— glassnode (@glassnode) April 8, 2025
For both ETH and SOL, the drop in profits means that a majority of holders are now underwater. This shift highlights the broader struggles faced by the two networks, especially since the market has encountered sustained bearish pressure. Ethereum’s position, with its vast ecosystem of decentralized applications (dApps) and smart contracts, seems unassailable in the long-term perspective. Nonetheless, the near-term loss of unrealized gains serves to remind us of the volatility and unpredictable nature of the crypto market. Similarly, Solana’s network upgrades and growing decentralized finance (DeFi) ecosystem face increasing competition, and the current decline in profit could make it harder for its market to recover in the near term.
Now, with most holders in the red, both Ethereum and Solana have some immense obstacles to face as the current market continues to trend toward uncertainty. Investors will almost certainly have both of these networks on their watchlists, looking for some sort of recovery in pricing that might help them regain some of the ground they’ve lost.
Middle Ground: Bitcoin, TON, and Dogecoin Showing Mixed Results
While Bitcoin ($BTC), TON Coin ($TON), and Dogecoin ($DOGE) are somewhat in between, their profit percentages demonstrate that these coins are not immune to the market pullback, although they have been affected less than ETH and SOL. The largest cryptocurrency by market cap, Bitcoin, has a whopping 76.8% of its supply in profit, despite this number representing a kind of decline of -11.9pp YTD. TON Coin, which seems to have gained a nice little niche for itself in the marketplace, also shows a pretty healthy profit ratio of 76.7%. But again, there is also a decent-sized profit decline here: -5.5pp.
At the same time, the well-known memecoin Dogecoin ($DOGE) has 50.8% of its supply in profit, which is down 32.3 percentage points since the beginning of the year. While Dogecoin is still a highly unstable asset (it is one of the more volatile assets in the cryptocurrency market), not to mention a highly speculative one, its considerable cultural cachet, along with endorsements from celebrities (most notably Elon Musk), seems to keep it afloat. But the sharp decline in unrealized gains shows that if Dogecoin had any momentum, it has certainly slowed down in 2022.
Market Sentiment and Implications for Investors
The present condition of unrealized gains across leading cryptocurrencies reveals a market that’s feeling the heat. Although some tokens, like TRX and XRP, still have substantial profits for their holders, the overall cryptocurrency market has taken some pretty rough drawdowns, with many holders now facing losses. Ethereum and Solana, in particular, seem to have taken some of the stoutest hits as they decline, reflecting the increased volatility that the major networks are swimming in. If you zoom out and look at the entirety of the crypto market, the picture that’s painted is one of a market under increased pressure.
The change in profit percentages reminds investors of the need to keep risk in check when investing in a volatile market. The assets held might serve as a litmus test for where investor confidence is currently focused—since the future of digital asset performance still seems a bit hazy. In my view, digital assets like Bitcoin, TON, and Dogecoin might serve as somewhat reliable indicators. They’ve performed relatively well of late, suggesting that the digital asset market might not be quite as perilous as it seems.
This data sheds light on the unceasing instability of the cryptocurrency market. It shows that some cryptocurrencies are better at weathering this storm than others. Going forward, it will be necessary for all cryptocurrency investors to undertake a close examination of their portfolios and to practice heightened vigilance. This is called for not just because of the losses that have recently flooded a large portion of the supply, but also because of the way that the “unrealized profit” scenario has recently changed for a large number of cryptocurrencies.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Source: https://nulltx.com/crypto-assets-in-profit-a-shifting-landscape-amid-recent-drawdowns/