Spent Output Profit Ratio (SOPR)

What is "Spent Output Profit Ratio (SOPR)"?

Spent Output Profit Ratio (SOPR) is an indicator that measures whether spent outputs (UTXOs) are realized at a profit or a loss. The metric is calculated as the ratio of the realized value of spent outputs (in USD) to their value at the time of creation (in USD).

Why is "Spent Output Profit Ratio (SOPR)" important?

SOPR reflects market participant' behavior at the moment coins are spent, allowing for assessing whether positions are predominantly realized at a profit or at a loss. The indicator’s dynamics help analyze shifts in market sentiment structure and market-cycle phases. Values above 1 indicate a dominance of profit-taking, while values below 1 indicate loss realization.