Ethereum Supply in Profit

The seven-day moving average of the percentage of ETH supply in profit reached 85.66% this week, representing its lowest point since November 2023.

This figure was at 94% just three weeks ago but has declined significantly, partly due to a market-wide selloff that saw ETH’s price drop by over 30%.

At the time of writing, the price of ETH is approximately 15% higher than at the beginning of the year; however, the percentage of ETH supply in profit is 3% lower.

This may indicate that much of the ETH acquired in 2024 was bought in the second quarter, a period during which ETH failed to surpass the $4,000 mark. This suggests that many buyers this year are holding ETH below their purchase price.

Despite the low percentage of profitable supply, it does not imply that most holders are at a loss for the year:

• Price Increase: The current price is 15% higher than the start of the year, indicating earlier buyers are likely still profiting.
• 2023 Buyers: Those who purchased ETH at lower prices in 2023 remain comfortably in profit.
• Recent Buyers: However, those who acquired ETH near the 2024 highs may be underperforming on their investments.

This is an excerpt from The Block’s Data & Insights newsletter. Explore the trends shaping the industry.