Onchain 101 - Glossary

Get up to speed with terminology and acronyms we often use in our posts.

• Onchain Data: Data, metrics and information extracted from the database contained within the Bitcoin blockchain.

• Realised Cap: The onchain market cap, valuing each coin at the price it last transacted. The Realised Price can be calculated as the Realised Cap divided by circulating supply (avg acquisition cost basis per unit of BTC).

• MVRV Ratio: Market Value (M.Cap) to Realised Value (R.Cap) Ratio, tracks the average unrealised profit/loss held per coin in the supply. It is best thought of as the incentive for investors to take profit (high value), or take losses (low value).

• SOPR: Spent Output Profit Ratio (SOPR) is the average profit/loss multiple ‘locked in’ by coins that transact each day. It is a powerful tool for tracking investor sentiment and sell-side, such as euphoria (greed) and capitulation (fear).

• Unrealised Profit/Loss: The magnitude of ‘paper gains/losses’ held by investors, calculated as the difference between the spot price, and the acquisition price of the coin onchain.

• Realised Profit/Loss: The magnitude of ‘locked-in gains/losses’ by coins that transact each day, calculated by comparing the spot price at disposal, to the original acquisition price.

• Short-Term Holders (STHs): Coins held under 155-days, higher likelihood to transact (usually speculators & traders).

• Long-Term Holders (LTHs): Coins held over 155-days, lower likelihood to transact (usually high conviction investors).