Definition. The total supply held by illiquid, liquid, and highly liquid entities, stacked into a single composite view. The three legs are mutually exclusive and sum to circulating supply by construction. Illiquid Supply, Liquid Supply and Highly Liquid Supply are the individual cohorts.

Technical. The liquidity of an entity is defined as the ratio of cumulative outflows to cumulative inflows over the entity's lifespan. An entity is considered illiquid, liquid, or highly liquid when its liquidity L sits at ≲ 0.25, between 0.25 and 0.75, or ≳ 0.75 respectively. Change returning to the same entity is excluded from these outflows and inflows.

Notes. For more information, see the introductory article on Bitcoin liquidity.