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 Profit Margin metric further categorizes these profits based on realized profit levels. This metric is particularly useful for understanding the extent and distribution of realized profits across the market, offering insights into how much of the market's realized profit is concentrated at different levels. For example, it can help answer questions like, 'Are most realized profits occurring at specific levels, indicating potential zones of profit-taking?'
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.