GlossaryAdvanced
Realized Loss
The actual, on-chain-measurable loss generated when a coin moves at a lower price than it was last acquired at.
Realized loss is the actual loss generated when a coin moves on-chain at a lower price than the price it was last acquired at — a genuine, on-chain-measurable figure, distinct from unrealized loss, which reflects a paper loss on coins that haven't moved at all.
A sustained period of elevated realized losses across a network — coins moving at a loss in aggregate — is commonly associated with capitulation-style selling during a market downturn, and is one of the underlying inputs behind SOPR (see Kaavon's "SOPR (Spent Output Profit Ratio)" glossary definition).
Examples
- A sustained period of elevated realized losses across a network is commonly associated with capitulation-style selling during a market downturn.
- Realized loss is a genuine, on-chain-measurable figure, distinct from an unrealized loss that exists only on paper until a coin actually moves.