Definition. The ratio of realized profit to realized loss across all entity-adjusted on-chain spending, split into profit-dominant and loss-dominant regimes.

Technical. The ratio divides entity-adjusted realized profit by entity-adjusted realized loss, with history taken from June 2010 onwards. It is split at 1.0 into two series so profit-dominant and loss-dominant periods render separately, and a 7-day EMA is plotted over the top.

Interpretation. Values above 1 mean more value is being realised in profit than in loss; values below mean the reverse. The transitions matter more than the level — the market flipping decisively from profit-dominant to loss-dominant is one of the clearer regime markers on chain, and the sustained extremes on either side mark euphoria and capitulation respectively.