Supply in Profit

Definition ∞ Supply in profit refers to the portion of an asset’s circulating supply whose current market price is higher than the price at which it was acquired by its holders. It is a metric used to gauge the profitability of existing coin positions within the market. Analyzing supply in profit provides insight into holder sentiment and potential selling pressure.
Context ∞ Discussions around supply in profit are central to understanding market psychology and potential price corrections in digital assets. A key debate involves the correlation between high supply in profit and the likelihood of significant sell-offs. Future developments to watch include how changes in this metric might precede or coincide with major market shifts.