Realized Profit is a metric that calculates the total profit 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 higher than the acquisition price. The Realized Profit by Age metric further categorizes these profits into different age cohorts, providing a detailed view of the total profit experienced by holders of supply portions of varying ages. This metric is particularly useful for understanding the distribution of profits across different age cohorts, from hot supply (recently acquired coins) to cold supply (older coins). For example, it can help answer questions like, 'Is the total realized profit greater for older or newer 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.