Ethereum Underwater Tokens Reach 2-Year High, Setting the Stage for a Potential Rebound

Most large-cap altcoins have moments of brilliance in this current bull cycle, with Solana and XRP being some of the stand-out performers

on-chain data from Santiment reveals that the amount of Ethereum (CRYPTO: ETH) tokens in the red has steadily increased over the past few weeks.

According to a Feb. 8 post on the X platform, the market capitalization of ETH has slumped by at least 36% since reaching a local high of $4,016 in mid-December.

As a result of this steady price decline, the amount of ETH tokens in profit has dropped since their date first mined.

On-chain data shows that the amount of Ethereum tokens in profit is currently around 97.7 million, which marks the lowest value since November 4, 2024 (the night Trump won the United States Presidential election).

At the same time, the ratio of the total ETH supply in profit stands at 65.5%, which is the lowest value since October 2, 2024, and down from 97.5% in early December.

“The crowd has been notoriously negative toward the #2 market cap as it has under-performed compared to other large caps,” Santiment noted in its post.

“With a great deal of FUD and retail traders willingly dumping their tokens, there may be some surprise bounces in store once crypto markets are able to stabilize.”

When a relatively lesser percentage of a token’s supply is in profit, resilient long-term holders are likely to dominate the market. This means most “FUD and retail traders” have exited their positions and sold their tokens, reducing downward pressure and setting the stage for a potential rebound.

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ETH Price Action: At the time of writing, the price of ETH is up 2.2% over the past 24 hours at $2,613.