Net Realized Profit/Loss

How to read Net Realized Profit/Loss

Every time a coin moves on-chain, its holder realises either a profit or a loss relative to the price it last moved at. Net Realized Profit/Loss sums this across the entire network each day. Because the dollar scale of this flow grows naturally as Bitcoin's market cap grows, it is expressed here as a percentage of market cap so readings are comparable across market cycles.

Net Realized P/L (%) = (Realized Profit − Realized Loss) ÷ Market Cap × 100

Large negative readings mean the network is realising unusually large losses relative to its size — historically a signature of capitulation. Large positive readings mean the network is realising unusually large profits — historically more common during strong bull-market phases, though recent cycles have shown this signal more clearly at bottoms than at tops.

• Below −0.16% — Deep Value — The network is realising losses at an extreme rate relative to its market cap. Rare, and has historically aligned with major bear-market lows.
• −0.16% to −0.02% — Undervalued — Net losses are being realised at a below-average scale. Often appears during market stress or while a recovery is still developing.
• −0.02% to 0.09% — Fair Price — Realized profit and loss are close to balanced. Normal market conditions with no extreme signal.
• 0.09% to 0.23% — Elevated — The network is realising profits at an above-average rate, consistent with stronger bull-market conditions.
• Above 0.23% — High Risk — The network is realising profits at an extreme rate relative to market cap. Sustained readings this high have historically appeared near overheated conditions.

This indicator is closely related to SOPR Z-Score — both look at profit-taking behaviour on-chain. SOPR Z-Score measures the average multiple coins are sold at; Net Realized P/L measures the total dollar-weighted flow relative to market cap. Use them together for a fuller picture of realised gains and losses across the network.