SOPR (Spent Output Profit Ratio)

1 min read

Pronunciation

[sop-er]

Analogy

Like calculating your gain or loss when selling stocks by comparing your selling price to your purchase price.

Definition

An metric that measures the realized profit or loss of spent UTXOs by comparing the spending price to the original receiving price.

Key Points Intro

SOPR indicates market sentiment by showing if spent coins are in profit or loss.

Key Points

Calculation: SOPR = (Spending Price) ÷ (Original Buying Price)

Interpretation: >1 implies profit, <1 implies loss

Time filtering: can be aggregated by day or specific cohorts

Market signals: used to identify local tops and bottoms

Example

When SOPR peaks above 1.1 and then declines below 1, analysts view it as a potential sell-signal in markets.

Technical Deep Dive

analytics index creation and spend timestamps, fetching price data from oracles or exchanges at respective times. Cohort SOPR tracks coins held for set periods. Rolling window calculations smooth volatility. Dashboards visualize SOPR alongside volume and realized capitalization.

Caveat

Price data inaccuracies or mismatches can skew SOPR; use multiple data sources for validation.

Related Terms

UTXO

HODL Waves

On-Chain Analytics

Blockchain & Cryptocurrency Glossary

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