Active Addresses by Profitability

Overview

This indicator categorizes daily active blockchain addresses based on their current profitability status. The status can be 'In the Money' (profiting), 'At the Money' (breaking even), or 'Out of the Money' (losing money).

Each active address's profitability status is determined by comparing the asset's acquisition cost with the current market price. If the market price is higher than the acquisition cost, the address is 'In the Money'. If they're equal, it's 'At the Money', and if the market price is lower, it's 'Out of the Money'. The total count of addresses and volume of holdings is then calculated into each category.

💡 How can I use it?

This indicator provides a snapshot of market sentiment and potential future selling pressure. If a large number of addresses are 'In the Money', it could suggest a bullish sentiment or potential selling pressure as holders might sell to realize profits. Conversely, a high number of 'Out of the Money' addresses might indicate bearish sentiment or buying opportunities as holders might buy more to average down their acquisition cost.