An overwhelming majority of PEPE investors are currently enjoying net unrealized profits, according to recent data shared by cryptocurrency researcher Vicakdo on X (formerly Twitter).
The “Global In/Out of the Money” indicator, provided by market intelligence platform IntoTheBlock, reveals the distribution of PEPE investors based on the historical price ranges at which they purchased their tokens. The indicator calculates the “cost basis” for investors by analyzing on-chain data to determine the average deposit price of the coins in each wallet. This helps categorize investors into three groups based on their current financial position:
– In the Money: Investors whose average purchase price is lower than the current market price, thus holding net unrealized profits.
– Out of the Money: Investors whose average purchase price is higher than the current market price, thus holding net unrealized losses.
– At the Money: Investors whose average purchase price equals the current market price, effectively breaking even.
The chart below illustrates the distribution of PEPE investors across these three categories, highlighting the significant proportion of investors currently in profit:
96.36% of all PEPE addresses are in the money, indicating that nearly all investors hold net unrealized profits. A small fraction of investors is experiencing unrealized losses. Only a small number of investors are breaking even at the current market price.
This high percentage of profitable investors can influence market dynamics in several ways:
1. Investor Confidence: Many investors in profit may bolster overall market sentiment and confidence in PEPE.
2. Potential Sell Pressure: Profitable investors might consider selling to realize gains, potentially leading to sell pressure.
3. Market Stability: With most investors in profit, the market may experience reduced panic selling during downturns.
The data highlights the current favorable position of PEPE investors, with an overwhelming 96.36% holding unrealized profits. This positive trend is reflected well in cryptocurrency, although it also sets the stage for potential sell-offs as investors look to lock in gains. Market participants should always stay informed and consider these dynamics when making investment decisions.
