It has been a tumultuous period for the cryptocurrency industry. Ever since the bull run came to a conclusion on 26 June this year, a majority of the altcoins’ valuation suffered under the hands of the bears. XRP, which is the third-largest cryptocurrency in the market, is currently striding at a valuation which is lower than the one recorded in January. The present situation has inadvertently affected the addresses of these virtual assets.
According to data from intotheblock.com, a majority of the altcoins’ addresses was operating at a loss, at press time.
The profit or loss metric on the website is calculated based on addresses with a positive balance that have acquired a virtual asset at an average price. If the asset’s current price was above the price at which addresses acquired it, it was considered a profit. Otherwise, it was a loss.
Based on this parameter, it was observed that over 70 percent of the addresses that bought into Bitcoin and Bitcoin Cash at an average price were in profit.
As it can be observed, over 19.96 million addresses bought into the largest crypto-asset, before the break-even price of $9,453.76, whereas 6.23 million addresses were operating at a loss. Besides Bitcoin and Bitcoin Cash, other virtual assets were projecting a different scenario.
The likes of Ethereum, Cardano, Dash etc. had more than 80 percent of their addresses currently operating at a loss in the market.
From the charts, it can also be observed that 80 percent of Ethereum’s addresses were operating at a loss, while Cardano had 81.79 percent of such addresses, all of which had bought into the token above the break-even price.
The fact that such a significant percentage of addresses is treading at a loss is indicative of the fact that a lot of users bought into the tokens after the bull run. However, the present bearish trend is depleting their profits.