English
LTH-SOPR
Long Term Output Profit Ratio ( LTH-SOPR) is a ratio of spent outputs (lived more than 155 days) in profit at the time of the window.

Definition

Long Term Output Profit Ratio (LTH-SOPR) is a ratio of spent outputs (lived more than 155 days) in profit at the time of the window.
It is calculated as the USD value of spent outputs at the spent time(realized value) divided by the USD value of spent outputs at the created time(value at creation).

Interpretation

The adjustment was made by not accounting for 155days less lived coins’ movements to track long-term investors. This allows excluding short-term investors or coins and only focuses on long term held movements.
As a result, the spectrum of UTXO coverage is 155 days<UTXOs age.

By Value itself

  • LTH-SOPR value greater than 1 ( LTH-SOPR > 1 )
    It implies that the coins moved in a certain timescale are, on average, selling at a profit.
  • LTH-SOPR value of exactly 1 ( LTH-SOPR =1 )
    It implies that the coins moved in a certain timescale are, on average, selling coins at break even.
  • LTH-SOPR value less than 1 ( LTH-SOPR < 1)
    It implies that the coins moved in a certain timescale are, on average, selling at a loss.

By examining trend

  • LTH-SOPR trending higher implies profits are being realized with potential for previously illiquid supply being returned to liquid circulation
  • LTH-SOPR trending lower implies losses are being realized and/or profitable coins are not being spent.