Crypto World Weighs in as PEPE’s Investor Profitability Plunges 26%

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In the volatile world of cryptocurrency, on-chain data tells a compelling story of investor sentiment. It paints a picture of PEPE investors, where currently only 69% are experiencing gains. This figure comes after a gritty 26% plunge that the memecoin has endured over the last week.

Digging into the cryptocurrency market’s underbelly, IntoTheBlock, a renowned market intelligence platform, has shed light on the current investor profitability situation regarding the trending memecoin, PEPE. The analytics firm’s unique metric determines profitability by examining an address’s on-chain history. From when the digital wallet acquired the coins, the indicator computes the investor’s average cost basis using the asset’s spot price at the time of these acquisitions.

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In essence, if the contemporary spot value of the cryptocurrency towers over this average cost basis for a specific address, it signifies that the respective investor is presently enjoying net gains. Investors in this advantageous category are deemed to be “in the money” by IntoTheBlock.

Meanwhile, investors who have a cost basis superior to the most recent price are considered “out of the money.” An equilibrium between these two measurements hints at the investor either breaking even on their venture or being “at the money.”

IntoTheBlock has generously shared intriguing data, demonstrating how this investor breakdown for PEPE appears at the moment. Evidently, 69% of all addresses holding PEPE have a cost basis beyond the coin’s current spot price, while 27% are nursing losses. Interestingly, 4% of the investors are teetering on their cost basis right now.

This profitability rate is not as impressive as some other coins. Compare it to Bitcoin, where a staggering 89% of investors are rejoicing in profit according to data from IntoTheBlock. The dip in returns for the memecoin, PEPE, stems from a recent nose-dive in its price.

Over time, investors in the green have shown propensity to sell and harvest their gains. Consequently, when the market sways heavily toward profits, a wave of selling could potentially ignite. Correspondingly, the likelihood of hitting a peak inflates with escalating investor profits. Conversely, a low proportion of investors reaping profits might indicate a floor approaching, as profit-centered selling dwindles at such levels.

At this particular juncture, PEPE is not commandeered by either victorious green or defeated red investors. When the bull’s run free, profitability levels tend to remain elevated, so a breather could bolster prices. The fact that investor profitability for PEPE has circled back to the 69% mark might signal that a bottom is near if the bullish trend is to endure.

PEPE has made a comeback to the $0.0000050913 mark after dwindling by more than 26% in the past week. An examination of the memecoin’s performance over the last month exposes a steep drop over recent days. A stirring narrative indeed of the turbulant world of PEPE and cryptocurrency.