Definition. The percentage of circulating supply in profit, meaning the share of existing coins whose price at the time they last moved was lower than the current price. Total Supply in Profit is the absolute variant.

Technical. For BTC, each UTXO is compared at its creation price. For all other assets, the metric uses an address-based approach: each address's full balance is compared at its average buy price, and balances whose cost basis is at about the current price count as neither in profit nor in loss. Supply is summed from individual address balances (UTXOs for BTC) rather than taken from Circulating Supply. For ETH and ETH tokens, contract addresses are excluded; for ETH tokens, burn addresses are also excluded.

Interpretation. A reading of 50% marks the crossing between profit-dominated and loss-dominated supply.

Notes. For more information, see Dissecting Bitcoin's Unrealised On-Chain Profit/Loss.