Analyzing On-Chain Data: Should You HODL Altcoins for the Long Term?

In this analysis, we delve into the on-chain data of the top 10 popular altcoins, comparing the number of investors experiencing losses while holding these coins. The findings shed light on the potential risks and rewards associated with HODLing altcoins compared to Bitcoin and Ethereum.

Key Takeaways:

  1. Bitcoin (BTC):

    Source:- Intotheblock

    • Investors in Losses: 35.2%

    • Retail Concentration (Unstaked): 89.2%

    • Average Time Token is Held: 4 Years

  2. Ethereum (ETH):

    • Investors in Losses: 38.13%

    • Retail Concentration (Unstaked): 89.2%

    • Average Time Token is Held: 2 Years

  3. Cardano (ADA):

    • Investors in Losses: 76.95%

    • Retail Concentration (Unstaked): 64.96%

    • Average Time Token is Held: 9.1 Months

  4. Polygon (MATIC):

    • Investors in Losses: 79.15%

    • Retail Concentration (Unstaked): 14.68%

    • Average Time Token is Held: 11 Months

  5. Shiba Inu (SHIBA):

    • Investors in Losses: 80.58%

    • Retail Concentration (Unstaked): 20.36%

    • Average Time Token is Held: 1.4 Years

  6. Lido (LDO):

    • Investors in Losses: 58.02%

    • Retail Concentration (Unstaked): 12.71%

    • Average Time Token is Held: 1.3 Years

  7. The Graph (GRT):

    • Investors in Losses: 69.37%

    • Retail Concentration (Unstaked): 13.89%

    • Average Time Token is Held: 1.2 Years

  8. The Sandbox (SAND):

    • Investors in Losses: 90.27%

    • Retail Concentration (Unstaked): 10.1%

    • Average Time Token is Held: 1.3 Years

  9. Axie Infinity (AXS):

    • Investors in Losses: 88.4%

    • Retail Concentration (Unstaked): 3.3%

    • Average Time Token is Held: 1.4 Years

  10. RNDR (RNDR):

    • Investors in Losses: 35.39%

    • Retail Concentration (Unstaked): 14.39%

    • Average Time Token is Held: 6.7 Months

Conclusion:

Based on the analysis, it is evident that a significant proportion of altcoin investors are facing losses compared to those HODLing Bitcoin and Ethereum. Bitcoin and Ethereum demonstrate a higher percentage of investors in profit. Among altcoins, Lido and RNDR stand out as having relatively lesser losses, while over 90% of investors HODLING The Sandbox (SAND) and Axie Infinity (AXS) are facing losses.

Considering the on-chain data, it is advisable to allocate a larger portion of your investments to Bitcoin and Ethereum, which have shown greater stability and profitability. However, it is essential to conduct thorough research and consider your risk tolerance before making any investment decisions.

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