Part 1 Beginner Why long-term crypto holders borrow against assets instead of selling A strategic guide to liquidity management, capital preservation, and the real tradeoff between selling and borrowing crypto Open guide 
Profit realization on the rise: aSOPR holds steady above 1.0 since March’s SVB collapse
aSOPR holds steady above 1.0: discover the implications for profit realization and a constructive market outlook.
This article was published 3 years ago. Some details may no longer reflect current market conditions or recent developments. If you spot anything that needs an update, contact us.
Quick Take
- The Spent Output Profit Ratio (SOPR) is computed by dividing the realized value (in USD) divided by the value at creation (USD) of a spent output — or simply: price sold / price paid.
- Adjusted SOPR is SOPR ignoring all outputs with a lifespan of less than 1 hour.
- Data indicates aSOPR has been holding above 1.0 since the SVB collapse in March. This signifies that the market is now, on average, realizing profits in on-chain spending.
- This generally aligns with a healthier inflow of demand (to absorb profit-taking) and a more constructive opinion of the asset.
- We tested 1.0 at the end of March, and I expect to test it a few more times — similar to previous bear markets. We could undershoot 1.0 to flush out leverage, similar to 2019.
- While both long and short-term holders realized profits for the first time since May 2022, this was in a downtrend in price. So we are in a similar period to early 2020 regarding price ascension.
Market Cap $1.59T
24H Volume $33.17B
