Definition. The total supply held by entities classified as highly liquid. Illiquid Supply and Liquid Supply are the other liquidity 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.