Ethereum's profitability profile has fundamentally compressed in the current cycle compared to previous bull runs, according to on-chain analytics firm Glassnode. The firm revealed recently that just 11% of ETH supply is sitting at a 3x profit, the lowest level since February 2017. This compression stems from market conditions and a structural shift in investor profitability dynamics, with the current cycle never reaching the 50% threshold that previous bull markets cleared.
Ethereum Supply at 3x Profit Hits Lowest Level Since February 2017
Glassnode shared data showing Ethereum supply carrying gains of more than 300% has declined to 11%. This means just over a tenth of the cryptocurrency's circulating supply is in significant profit at the current spot price. The last time the network saw this supply occupy a lower share was in February 2017. Both the 2019 and 2022 bear markets never saw profitability this compressed.
In previous cycles, the 3x profit supply crossed the 50% level during bullish phases. This cycle never saw the metric break the 30% mark. Glassnode stated that "ETH's profitability profile has fundamentally compressed relative to prior cycles."
Short-Term Holders Face 12% Loss as 30-Day MVRV Ratio Drops
On-chain analytics firm Santiment provided data on the Market Value to Realized Value (MVRV) Ratio tracking buyers from the last 30 days. Ethereum's 30-day MVRV Ratio is currently sitting at -12%, while Bitcoin's is at -10%. The ratio plummeted to deep negative territory as the market crash played out, though the situation has improved slightly with the rebound that followed.
Santiment explained that "when the average trader is sitting on significant losses across networks that are normally hovering at 0% (zero sum game), selling pressure often becomes exhausted as weak hands capitulate and long-term investors begin accumulating."
Ethereum Price Rebounds to $1,680 After Weekend Drop
Ethereum fell near the $1,500 level during the weekend. The coin has since bounced back, with its value now sitting around $1,680.
FAQ
What percentage of Ethereum supply is currently at 3x profit?
According to Glassnode, 11% of Ethereum's circulating supply is sitting at a 3x profit at the current spot price.
How does Ethereum's current profitability compare to previous cycles?
Ethereum's profitability has fundamentally compressed relative to prior cycles. In previous bull runs, the 3x profit supply crossed 50%, but this cycle never exceeded 30%. The current 11% level is the lowest since February 2017, below both the 2019 and 2022 bear markets.
What is Ethereum's 30-day MVRV Ratio?
Ethereum's 30-day MVRV Ratio is currently at -12%, indicating that buyers from the past month are sitting on significant losses. Santiment notes this often signals selling pressure exhaustion as weak hands capitulate.
