The Illiquid Supply Shock (ISS) Ratio is calculated as the ratio between Illiquid Supply, and the sum of Liquid and Highly Liquid Supply. This metric attempts to model the probability of a Supply Shock forming, whereby fewer coins are available relative to the current demand trend.

Where coins are primarily flowing out of liquid circulation, the ISS Ratio will trend higher suggesting increased probability of a supply shock. Conversely, downtrends in ISS Ratio will occur as illiquid coins are spent back into liquid circulation, reducing the probability of a supply shock.

Coined By

Will Clemente and Willy Woo

References

Supply Shock, predicting price by quantifying intent to buy and sell, 10-Aug-2021.