Research shows: only 0.01% of Ethereum holders are in a profitable state

A recent research data shows that after weeks of consecutive decline, 99.99% of Ethereum holders are at a loss or not profitable, and since November, the second-largest market cap Ether has dropped by over 42%.

In fact, the overall cryptocurrency market is showing a general decline, but the second half of the year has been particularly tough for Ethereum holders. By the end of October, the price of Ether was $187, with only 27% of holders in a profitable state, compared to 76.7% of Bitcoin holders.

According to data from the crypto analytics platform IntotheBlock, Ethereum is currently priced at $136, with only 0.01% of addresses (4,120 addresses) in a profitable state. A significant 91.09% of holders purchased at a higher price than the current one, while 2.95% are at break-even.

Majority of Bitcoin holders in profit

Comparatively, the situation for Bitcoin holders is much better than that of Ethereum holders. Even after recent significant drops in Bitcoin, nearly 55% of Bitcoin addresses remain profitable.

From the trading distribution in the above image, it can be seen that most Ethereum trades are priced above $200, indicating that Ethereum would need a substantial increase for most holders to recover losses.

However, the report also emphasizes that the trading distribution could pose significant obstacles to price increases, as it shows potential sell-off price levels, meaning Ethereum holders may sell as soon as they break even or make a profit, leading to significant selling pressure in certain price ranges.

Significant Decrease in Compound Lockups

Decentralized Finance (DeFi) has risen and performed impressively this year, with a total value reaching an all-time high, locking up nearly three million Ether in various DeFi applications.

While this is a significant development for Ethereum's adoption, recent market downturns have led DeFi platforms to continue liquidating Ether to fulfill debts, potentially exacerbating the current downtrend.

Since November, the amount of Ether locked in the lending platform Compound has sharply declined, confirming this trend.

Nevertheless, the crypto community generally believes that DeFi can significantly drive on-chain activities for Ethereum, which will be a key factor in catalyzing a price rebound.

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