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Here’s what on-chain data reveals about the profitability of different segments of Dogecoin, Shiba Inu, and Pepe investors.
Dogecoin, Shiba Inu and Pepe compared in terms of investor profits
In a new insight afterOn-chain analytics firm Santiment has discussed how the industry’s three largest memecoins, DOGE, SHIB, and PEPE, have fared in terms of various indicators.
One of the metrics that the analytics firm has talked about is the Market Value to Realized Value Ratio (MVRV) Intraday, which tells us about the percentage of profit or loss that investors currently own.
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When the value of this statistic is greater than 0%, it means that the overall market is in a state of profit. On the other hand, the indicator that is below this limit indicates that the holders are experiencing a net loss.
In the context of the current topic, the Intraday MVRV ratio of the entire market is not of interest, but rather that of two specific segments: the 30-day and the 365-day investors.
The MVRV Ratio Intraday for the 30-day investors would obviously only track the profitability of the addresses that purchased their coins in the last month. Similarly, the 365-day version of the metric would tell us about the profit/loss status of the buyers over the past year.
First, here is the trend in these two indicators for the original memecoin, Dogecoin, over the past year:
As shown in the chart above, the Dogecoin MVRV Intraday for the 30-day investors is currently trading at just 1.7%, meaning this cohort is only slightly in the green.
Normally, long-term holders enjoy higher profits than those who bought recently, but in the case of DOGE, it’s now the exact opposite. The investors who bought in the past year are in the red: their holdings are almost 21% underwater.
“With prices having fallen significantly since the peak in mid-April, there is an argument for a price rebound to bring this shortage back to breakeven in the long term,” Santiment notes.
Dogecoin’s rival, Shiba Inu, fares even worse in these numbers, with both categories of investors suffering losses.
The 30-day Shiba Inu investors are holding on to their tokens at a small loss of 1%, while the 365-day buyers are over 31% below their average cost basis.
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Interestingly, Pepe’s situation is the opposite of SHIB and DOGE, rewarding the patience of the memecoin’s long-term holders.
Monthly investors for PEPE are down about 0.8%, while annual investors are posting gains of almost 24%. According to the analytics firm, this indicates that “there is still some upside that patient traders may have to wait for to evaporate before there is a clear buy signal.”
DOGE Award
Currently, Dogecoin is trading around $0.988, down almost 4% in the past 24 hours.
Featured image from Dall-E, Santiment.net, chart from TradingView.com