This metric shows the Net Realized Profit/Loss by the Short-Term Holder cohort. The metric is calculated from the components of Realized Profit, minus Realized Loss (in USD terms). It shows the net daily change in the Realized Cap, and thus capital inflows and outflows from the Bitcoin asset.
Realized Profit and Loss is one of the more powerful and unique tools within the discipline of on-chain analysis. It utilizes a concept called Pricestamping, where each coin (or UTXO) is assigned a price (and thus USD value) when it is spent on-chain.
From this, we can calculate the difference between the value at the time of disposal, and at the time of acquisition.
These tools allow for inspection of the capital inflows and outflows from the asset, and also provide indicators for both shorter and longer term sentiment across the market.