Dogecoin Supply in Loss Hits 50% as Market Faces Downturn: Bitcoin and XRP Show Diverging Trends

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• Nearly 50% of Dogecoin’s circulating supply is in loss, a sign of unrealized losses at a time of ongoing market volatility.
• In contrast, over 80% of XRP’s circulating supply remains in profit, showing its relative stability compared to other major cryptocurrencies.

Recently, on-chain data has shown that nearly 50% of Dogecoin’s (DOGE) circulating supply is now in a state of loss, an indicator of the cryptocurrency’s underperformance in the current market.

The metric, referred to as “Supply in Loss,” is the share of coins purchased at prices greater than their current market value. For Dogecoin, the percentage is a high drop, revealing that most investors are presently holding unrealized losses. The drop happens in parallel with increased market volatility that has affected the crypto market in general.

Dogecoin is not alone in its struggles. Bitcoin (BTC) and Ethereum (ETH) are also seeing portions of their supply in loss, with Bitcoin’s Supply in Loss rising to 36% and Ethereum’s standing at 44.9%. 

These figures reflect the global pressures faced by major digital assets, as their prices remain under major pressure. However, Dogecoin stands out in the severity of its losses, with a larger portion of its supply below in negative territory compared to some other top-tier cryptocurrencies.

Dogecoin’s case is complicated due to its unique position in the market, with a great deal of its supply belonging to early adopters who bought the token at far higher prices when it was near its all-time high. Despite this, the “Supply in Loss” metric should not be viewed solely as a negative indicator. 

Rather, it is a sign of the shifting market sentiment and the ongoing uncertainty within the space. For long-term holders, there may still be the potential for a recovery as the market stabilizes.

XRP Demonstrates Relative Stability with Over 80% of Supply in Profit

In contrast, XRP has demonstrated a more resilient market position, with over 80% of its circulating supply remaining in profit. 

This is the opposite for Dogecoin and other cryptocurrencies, where large portions of supply are in loss. XRP’s performance has been more stable, with a combination of moderate price volatility and strong community support contributing to its relatively healthy outlook.

This difference in performance between XRP and Dogecoin is proof of the variability in how different cryptocurrencies react to similar market conditions. 

While Dogecoin is experiencing unrealized losses, XRP’s continued profitability suggests a more stable and supportive investor base. XRP’s strength in maintaining profitability, despite the global bearish trends, may indicate that its holders are less likely to sell off their positions, providing the token with a firmer foundation moving forward.

While Bitcoin and Dogecoin continue to struggle with losses, XRP’s strong profitability stands in sharp contrast, offering its investors a more favorable position in the current challenging market environment.