Market Profitability

Definition ∞ Market Profitability measures the extent to which participants in a given market are generating financial gains from their asset holdings or trading activities. It can be assessed through various on-chain metrics that analyze the cost basis of spent or unspent assets. High market profitability often signals strong investor confidence.
Context ∞ Crypto news often references Market Profitability when analyzing overall market health, investor sentiment, or potential turning points in price cycles. It provides context for understanding whether the majority of market participants are holding assets at a gain or loss. This metric helps assess the psychological state of the market and potential selling pressure.