Aggregate Profit

Definition ∞ Aggregate profit represents the total realized gains across a specific set of digital asset transactions. This metric quantifies the collective profit obtained by market participants who sold their holdings for a value exceeding their acquisition cost. It offers a clear view of overall market profitability and the distribution of financial successes within a given period.
Context ∞ Tracking aggregate profit is essential for understanding broad market sentiment and the stages of a cryptocurrency cycle. High levels of aggregate profit often correspond with periods of market exuberance, potentially signaling an impending price correction or distribution phase. Conversely, sustained low aggregate profit can indicate market capitulation, suggesting a potential for future recovery.