New Metrics Shed New Light on Understanding How a Network's Total Supply is Faring

Two new metrics are the latest addition to Santiment, and they are more helpful than you probably expect!

Next time you log on to Sanbase, check out the following metrics:

  • Total Supply in Profit
  • Percent of Total Supply in Profit

These new metrics provide a new and fresh way to analyze the markets. Their calculations should be somewhat self-explanatory, based on their names. Regardless, here is a quick walkthrough about how each of them work:

Total Supply in Profit offers a great way to understand just how much the total supply, which exists on a network, is up or down at any given time. This is a simplified way to simply see whether a coin is worth more or less now, compared to the time in which it was first minted/mined/entered circulation. Even +0.00001% is considered 'in profit', and is essentially identical to a coin that is +90%.

Percent of Total Supply in Profit works quite similarly, and only looks at the percentage of supply that is available at the time, as opposed to just the total amount of coins (which could sometimes be misleading since more coins are mined and enter the network's ecosystem over time). Either way, remember that this is a very binary way of seeing the ratio of the total supply simply being in profit, even if it is a very small profit.

These metrics could arguably work very well when paired with the MVRV, RSI, and Network Realized Profit/Loss metrics. Just like supply in profit, these metrics offer more shorter term perspectives at how the network is profiting or losing value on their investments over time. And remember, this matters because crypto is a zero sum game. When networks are heavily profiting, according to these kinds of metrics, then watch out. But if they are heavily bleeding, the metrics provide you with a transparent, open window to suggest adding to your positions.

Let us know what you think of these metrics, and we are very much open to feedback on this, and other suggestions for future additions to the growing Santiment collection of great leading metrics!


Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

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