Only 14% of Litecoin holders are currently in profit, while Ethereum’s is at 51%

Only 14% of Litecoin holders are currently in profit, while Ethereum's is at 51%

The ongoing crypto market volatility has partly plunged most investors into losses, with the general sell-off showing minimal signs of cooling down. However, some holders are still in profit, which varies based on the specific asset in question. 

In particular, a comparison of the number of holders in profit between Litecoin (LTC) and Ethereum (ETH) exhibits significant differences. In this line, as of September 25, the share of Litecoin holders still in profit with the assets trading at $53 by press time stands at 14%, while a whopping 74% are making losses with the remaining 12% breaking even, according to TipRanks data.

Litecoin holders making money at the current price. Source: TipRanks

Elsewhere, amid increased network activity and a significant fall from its all-time high, over half of Ethereum holders at 51% are in profit with the asset’s price of $1,320 by press time. Only 46% are in the loss. 

Ethereum holders making money at the current price. Source: TipRanks

Explaining variation in portability 

The variation of holders in profits between the two cryptocurrencies does not come as a surprise, considering Litecoin has experienced significant losses, unlike Ethereum, which has managed to retain a bullish outlook amid initiatives to improve the network. 

At the same time, the holders in profit point to the status of the two assets in the crypto market. Although both coins have their values and have experienced massive losses, Ethereum is at a critical stage of development, driving excitement among the crypto community regarding prospects of the decentralized finance (DeFi) asset. This ability to attract more investors will likely keep driving interest in Ethereum. 

Furthermore, Litecoin has increasingly formed a bearish outlook in correlation with the general crypto market. With little ongoing activity on the network, the asset might potentially embark on another steep correction unless the general market rallies. 

It is worth pointing out that Ethereum has struggled to sustain its price above $1,500 after initial projections that the asset would rally after the historic Merge upgrade. Notably, the event that transitioned the network to Proof-of-Stake (PoS) status turned out to be a buy the rumor sell the news scenario as the impact of the broader market outweighed the asset. 

In reality, a vast majority of Ethereum holders have continued to be in profit despite the sell-offs across the market. Furthermore, the holders are potentially early adopters of the second-ranked cryptocurrency by market capitalization. 

Bullish sentiments around Ethereum 

Eventually, the ability of holders to stay in profit will largely depend on how Ethereum recovers from the current state, considering that a section of market analysts are projecting that the Merge is a bullish sentiment for the asset. 

Similarly, technicals indicate that Ethereum is nearing a bottom and ready to rally. As reported by Finbold on September 23, Ethereum’s ‘Rainbow chart’ hinted at a rally in the future. 

However, it is worth pointing out that banking giant JPMorgan (NYSE: JPM) has warned that the Merge might spell problems for Ethereum citing issues like division within the community and decreased decentralization. Most importantly, the bank noted the sharp decline in ETH’s price after the upgrade as a key area of concern. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.  

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