Ethereum, the second-largest cryptocurrency by market capitalization, continues to be an attractive investment for many in the crypto community.
But the question remains: how many Ethereum (ETH) holders are actually in profit?
Recent data offers an insightful look into this. According to a snapshot of Ethereum’s holder statistics, we can break down the profit distribution and provide a clearer picture of the current state of ETH holders:
Profit Breakdown
61% of Ethereum holders are currently in profit.
34% of holders are in a break-even position (neither in profit nor loss).
5% of holders are at a loss.
This shows that a significant majority, 61%, are holding ETH in profit. This can be attributed to Ethereum’s strong performance over time, particularly during its periods of growth and the increasing adoption of the network for decentralized finance (DeFi), NFTs, and smart contracts.
Time-Weighted Profitability
The data also provides insights into the “holders’ time share,” which reflects how long investors have been holding their Ethereum:
75% of Ethereum holders have held their positions for over a year.
22% have held for between 1 and 12 months.
Only 3% of holders have held ETH for less than a month.
Long-term holders (1 year and beyond) dominate the network, which suggests that many investors believe in the future growth of Ethereum and are holding through market fluctuations.
Large Holders and Market Impact
Interestingly, a significant portion of Ethereum holdings is concentrated in the hands of large holders:
This concentration can impact the market, as large holders (whales) can move the market significantly with their buying or selling actions. However, despite this concentration, the market has shown resilience, with the majority of holders still remaining in profit.
Netflows and Market Dynamics
Over the past week, Ethereum’s netflows have been negative, with -$82.45 million in net outflows. This suggests that more ETH is being sold or moved out of exchanges than bought. Despite the outflows, a significant number of holders remain in profit, indicating the overall strength of Ethereum’s network and price action over time.
Conclusion
The majority of Ethereum holders, specifically 61%, are in profit at the moment, with long-term holders making up a significant portion of that group. ETH future remains optimistic, driven by continued adoption and technological advancements, such as Ethereum 2.0. However, with a high concentration of ETH held by large holders and ongoing market fluctuations, potential investors should carefully consider the dynamics of this volatile but promising asset.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/how-many-ethereum-holders-are-in-profit/