Ethereum’s profitability plunges to 2-year low as price corrects below $2,000


Ethereum is in a downward trend along with the rest of the crypto market. This has caused the cryptocurrency’s value to fall below USD 2,000 and attempts to recover above this major resistance level have been futile. Obviously, the digital asset’s depreciation has impacted its profitability. As a result, Ethereum portfolios that are making a profit at current prices have now fallen to a two-year low.

Ethereum Profitability Drops

Ethereum remains the second largest cryptocurrency by market cap, but when it comes to profitability, it tells a different story. Data shows that the percentage of profitable ETH wallets has fallen significantly in recent months. Along with price, most of the decline in profitability has occurred in the past six months.

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IntoTheBlock shows that only 56% of all Ethereum investors are currently making a profit. This brings a total loss of 43%, while only 1% of all investors are in neutral territory, meaning they bought their tokens at current prices.

Dates from glass node supports this statistic, although it places the number of profitable addresses at a slightly higher percentage. The data aggregation tool shows that 58% of all ETH investors are still making a profit. However, what is striking about this figure is that the last time Ethereum’s profitability was this low was almost two years ago, in July 2020.

ETH price is trading at $1,781 | Source: ETHUSD on TradingView.com

It is no coincidence that the majority of those who make a profit are investors who have been in the market for over a year. The long-term outlook for the smart contract network has always favored those who tracked it compared to the short-term ones.

Small wallets ascending

Even with the downward trend that has turned digital assets upside down, support still hasn’t eased. Smaller investors have continued to throw in their hats with Ethereum. This is evidenced by the growing number of wallets with at least 0.01 ETH reaching a new all-time high. It now stands at a new record of 22,874,566 addresses.

This metric has hit multiple all-time highs in the first two quarters of 2022. It shows renewed interest from smaller investors, but unless this interest becomes apparent among the largest ETH investors, there may be no significant change in value.

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As for the price of the digital asset, the price of Ethereum is down more than 60% from its all-time high in November. It currently trades at $1,770 with a market cap of $213.9 billion. It remains the largest DeFi platform with over $67 billion in TVL

Featured image of Coingape, chart from TradingView.com

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