Realized Profit
The actual, on-chain-measurable profit generated when a coin moves at a higher price than it was last acquired at.
Realized profit is the actual profit generated when a coin moves on-chain at a higher price than the price it was last acquired at — a genuine, on-chain-measurable figure, distinct from unrealized profit (see Kaavon's "Unrealized Gain" glossary definition), which reflects a paper gain on coins that haven't moved at all.
Aggregate realized profit across an entire network is one of the underlying inputs behind SOPR (see Kaavon's "SOPR (Spent Output Profit Ratio)" glossary definition), which compares aggregate realized profit against aggregate realized loss (see Kaavon's "Realized Loss" glossary definition) to gauge overall market behavior.
Examples
- A coin moving on-chain at a price above where it was last acquired contributes to aggregate realized profit, an on-chain-measurable figure.
- Realized profit and realized loss, aggregated together, are the underlying inputs SOPR uses to gauge overall market behavior.