Addresses in Profit is a metric that counts the number of unique addresses that are in profit, meaning the current price is higher than their average acquisition price. The Addresses in Profit by Age metric further categorizes the number into different age cohorts, offering a detailed view of the distribution across varying holding periods for an asset, from hot addresses (with coins aquired more recently) to cold addresses (older, with dormant coins).
Note: The breakdown metrics utilize an address-based approach, analyzing transactions and holdings based on individual wallet addresses to facilitate comparability across digital assets and to ensure consistent analysis across various blockchain architectures. This contrasts with the alternative UTXO-based approach for chains like Bitcoin, where unspent transaction outputs are analyzed to categorize asset properties. As such, metrics for UTXO-based assets may show slight deviations if compared across these different computational methods.