Crypto Whale Takes $228M Loss as 7% of Token's Supply Remains Underwater

A large crypto holder, known as a whale, has taken a significant loss of $228 million by selling their position. The timing of this sale is noteworthy, as it occurred when only 7% of the token's total supply was held at a loss. This means that roughly 93% of the supply was still in profit or breakeven.

The concept of 'supply underwater' is an on-chain metric that compares the price at which each coin last moved against the current market price. If a coin was last sold above today's price, it is considered underwater. The 7% figure indicates that the pain is concentrated in a small slice of holders, who likely bought in at a price the market hasn't returned to.

The whale's decision to sell at a loss may seem irrational, but it's not unprecedented. Large holders may choose to cut their losses to avoid further risk or to deploy their capital elsewhere. This decision can also be driven by conviction, if the holder no longer believes the asset will recover to their entry price.

The token involved has not been disclosed, and the entry price from which the loss was realized is unknown. However, the underwater supply figure is worth tracking, as it can indicate the overall health of the market. A rising underwater supply figure could suggest more holders are slipping into losses, leading to further forced or voluntary selling.