Definition ∞ Realized profit volume is the total aggregate value of profits realized by investors who sell their digital assets for a price higher than their acquisition cost. This metric reflects the amount of profit taken out of the market by participants. It indicates periods of significant capital gains distribution. High realized profit volume can suggest a potential for increased selling pressure.
Context ∞ Cryptocurrency news often analyzes realized profit volume as an on-chain indicator to gauge market sentiment and potential selling pressure. A sudden increase in this metric can signal that investors are cashing out, potentially leading to price corrections. Understanding this volume helps in assessing the distribution phase of a market cycle.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
