Realized Loss is a metric that calculates the total loss of a digital asset based on the difference between the acquisition price and the sale price of all spent coins where the sale price was lower than the acquisition price. The Realized Loss by Age metric further categorizes these losses into different age cohorts, providing a detailed view of the total loss experienced by holders of supply portions of varying ages. This metric is particularly useful for understanding the distribution of losses across different age cohorts, from hot supply (newly acquired coins) to cold supply (older, dormant coins). For example, it can help answer questions like, 'Is the total realized loss greater for hot or cold supply?'

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.