The total supply of a digital asset is a fundamental metric representing the total quantity of that asset in circulation. The Supply by Profit and Loss metric further categorizes this total supply based on unrealized profit and loss levels, using Fibonacci retracement levels to provide a detailed view of the distribution of the total supply across different profit and loss thresholds. This metric is particularly useful for understanding how much of the total supply is held at a profit versus a loss, offering insights into the market's overall sentiment and potential support or resistance levels. For example, it can help answer questions like, 'Is the majority of the total supply currently held at a profit or a loss relative to its acquisition cost?'

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.

This is the Point-in-Time (PiT) variant of Supply by PnL. PiT metrics are strictly append-only and their history is immutable. The historic data does not necessarily reflect the best current knowledge, but the information at the time when a data point was first computed. PiT metrics are ideal candidates for applications in model backtesting and related quantitative purposes. Read our article on PiT metrics for more information.