Large altcoins such as Ethereum (ETH), Solana (SOL), and XRP are gradually losing their appeal for crypto investors. These assets were once considered essential holdings for small investors. However, prices are now below where they were at the beginning of the year.
On-chain data shows that investors are increasingly facing losses. The question is whether there is still a chance to regain what was lost.
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Loss pressure may deter new investors
Glassnode’s supply-to-profit data for ETH, XRP, and SOL shows a continuous decline since October.
The supply ratio in profit measures the number of coins whose last movement occurred at a price lower than their current value. A decline in this indicator means that fewer coins are earning profits.
Conversely, if the prices of large altcoins continue to fall, the number of coins with losses will increase.
“The percentage of supply loss for the top assets is as follows:
BTC: 34.91%
XRP: 36.70%
Ethereum: 38.37%
SOL: 74.84%” — reported by Glassnode.
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Additionally, realized losses provide a more concrete view. This shows the total USD value of the coin moved when its previous price was higher than the current market price.
This indicator reflects the 7-day average realized loss and highlights the situation for new traders who bought during the recent price decline.
As of November 25th, ETH, SOL, and XRP all posted their highest seven-day average realized losses since the market crash in April.
“As prices continue to struggle to recover, realized losses for new investors in major altcoins are increasing, indicating increased stress for speculative purposes in the market.” — Glassnode comments.
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Loss pressures may continue to encourage new market entrants to exit, thereby conserving capital and further exacerbating the downward momentum.
Instead, many investors are starting to focus on altcoins with more compelling stories, such as privacy coins and neobank coins.
Short-term outlook: the most important conditions for recovery
Santiment uses on-chain indicators to provide more optimistic framing. Based on the MVRV (market value to realized value) ratio, short-term and intermediate-term holders of ADA, LINK, ETH, and XRP have experienced significant losses.
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Rather than highlighting the losses, Santiment said these assets may be undervalued. This suggests a potential recovery towards average valuation levels.
What conditions will be necessary for large altcoins to recover and regain their market leadership role? An institutional report from Altcoin Vector — Swissblock states that the answer depends on Bitcoin price movements.
“If BTC stabilizes like it did in April and is ready for expansion, a turnaround could occur at the end of the fourth quarter.” — Altcoin Vector Forecast.
However, even Bitcoin has been under strong selling pressure this month. Bitcoin’s recovery could be the quickest catalyst to break the pessimistic market sentiment that has persisted throughout this month.
