What is SOPR (Spent Output Profit Ratio)?

What is SOPR (Spent Output Profit Ratio)?

Calculation

SOPR is calculated simply as (Price sold / Price bought)

SOPR values

There are three possible values of SOPR.

  1. SOPR > 1
  • The coin holder made a profit.
  • The selling price is higher than the buying price
  1. SOPR < 1
  • The coin holder made a loss.
  • Based on the formula above the selling price is lower than the buying price
  1. SOPR = 1
  • The coin holder made no profit or loss.

Here is an example of ETH SOPR:

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Indication by SOPR

What does this SOPR indicate?

  • In general, higher SOPR values indicate that more profit was realised that day. Successive peaks of high SOPR (creating an indicator uptrend) suggest continual distribution, usually during bullish price rallies.
  • A lower SOPR indicates fear and panic selling in the market.

References