The Cost Basis Distribution (CBD) Heatmap provides a detailed visualization of supply density across price levels over a specified period (e.g., 1 month, 1 year). By selecting a time range, this metric displays a heatmap where the y-axis represents the cost basis on a log scale, set from 1% below the minimum price to 1% above the maximum price within the chosen period. Each pixel’s color intensity reflects the concentration of supply at that price level, allowing investors to identify where significant portions of the asset supply were acquired. This visualization enables a clearer understanding of how price levels correlate with accumulated supply density, offering insights into potential support and resistance areas based on historical acquisition levels Note - All CBD metrics utilize an address-based approach, analyzing holdings based on individual wallet addresses for consistency across digital assets and comparability across blockchain architectures. This differs from a UTXO-based approach, as used in metrics like URPD, which categorizes supply based on unspent transaction outputs, typically used for chains like Bitcoin. Therefore, metrics for UTXO-based assets may show slight differences when compared across these distinct computational methods.
