The STH Realized P/L Ratio is simply the ratio between the STH Realized Profit and Realized Loss. It provides a view on both macro trend, shifts in market sentiment, and the directional dominance of value flowing in/out of the network.

The STH Realized P/L Ratio can be used on both longer and shorter term timeframes and moving averages to provide insight into:

• Macro market trends whereby profit dominance is typical of uptrends 🟢, and loss dominance typical of downtrends 🔴.

• Breaks above/below 1.0 suggesting regime shifts signalling a potential shift in profit/loss dominance alongside market strength/weakness.

• Retests of 1.0 within an established trend signalling a market equilibrium and decision point is reached.

Realized P/L Ratio has a similar interpretation framework to the SOPR metric, with a detailed breakdown available on Glassnode Academy.