Recent insights from Glassnode highlight a concerning trend in the cryptocurrency market, revealing that Bitcoin, Ethereum, and Solana are experiencing unprecedented levels of supply held at a loss. However, according to the results published in the material, a deeper analysis indicates that the effective liquid supply under pressure is not as severe as the figures might imply, particularly for Ethereum and Solana.
Significant Portion of Ethereum and Solana Held at a Loss
The data shows that a significant portion of Ethereum and Solana held at a loss is not liquid. Specifically, over 40% of ETH and more than 75% of SOL are currently locked in:
- staking
- exchange-traded funds (ETFs)
- strategic reserves
which limits their availability for trading. This means that while the percentages of supply at a loss appear alarming, the actual impact on the market may be less pronounced.
Bitcoin's Supply at a Loss
In contrast, Bitcoin's supply at a loss also seems substantial. However, when accounting for institutional holdings and the amount of BTC that has been lost over time, the true liquid supply is considerably lower. This suggests that the market may not be as vulnerable to loss-driven selling pressure as the raw statistics indicate.
Overall Findings
Overall, the findings point to a more contained liquid supply facing potential losses, challenging the narrative of widespread distress in these major cryptocurrencies.
In light of recent findings regarding supply held at a loss in major cryptocurrencies, Pumpfun has launched new grants to support Solana community tokens, enhancing liquidity and sustainability. For more details, see read more.
