CryptoQuant User Guide
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  • 🔍What is CryptoQuant
    • Introduction
      • How We Process Data
      • Why Trust CryptoQuant Metrics?
      • Why Market Driven?
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      • What is On-Chain Data?
      • What are Entities?
      • What is a UTxO?
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  • 🎯QuickStart
    • 5 Minute Data Guide
      • 3 Key On-Chain Metrics
      • 3 Key Market Metrics
      • 3 Key Indicators
      • Deriving Insights
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      • 1. Charting Overview
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        • Miner Selling
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  • 📊CryptoQuant Metrics
    • Exchange Flows/Indicators
      • Exchange In/Outflow and Netflow
      • Exchange Reserve
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      • Exchange Addresses Count
      • Exchange Transactions Count
      • Fund Flow Ratio
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      • Exchange Inflow CDD
      • Exchange Inflow - Spent Output Age Bands
      • Exchange Inflow - Spent Output Value Bands
    • Miner Flows/Indicators
      • Miner Outflow
      • Miner to Exchange
      • Miners' Position Index (MPI)
      • Miner Supply Ratio
    • UTxO Data/Indicators
      • Profit and Loss (UTxO)
      • Profit and Loss (Supply)
      • Coin Days Destroyed (CDD)
      • Binary CDD
      • Mean Coin Age (MCA)
      • Sum Coin Age (SCA)
      • Sum Coin Age Distribution (SCA Distribution)
      • Spent Output Profit Ratio (SOPR)
        • aSOPR (Adjusted SOPR)
        • STH-SOPR
        • LTH-SOPR
        • SOPR Ratio (LTH-SOPR/STH-SOPR)
      • Net Unrealized Profit/Loss (NUPL)
      • UTXO Bands (Age)
        • UTXO Age Bands
        • Realized Cap - UTXO Age Bands
        • Realized Price - UTXO Age Bands
        • UTXO Count - Age Bands
        • Spent Output Age Bands
      • UTXO Bands (Value)
        • UTXO Value Bands
        • Realized Cap - UTXO Value Bands USD
        • UTXO Count - Value Bands
        • Spent Output Value Bands
    • Market Data/Indicators
      • Open Interest
      • Funding Rates
      • Estimated Leverage Ratio
      • Taker Buy Sell Volume/Ratio
      • Capitalization models
      • Realized Price
      • Exchange Whale Ratio
      • MVRV (Market Value to Realized Value) Ratio
    • Network Indicators
      • NVT Ratio
      • NVT Golden Cross
      • Puell Multiple
      • Stock to Flow Ratio
      • Stock to Flow Reversion
      • NVM Ratio
    • Stablecoin Exchange Flows/Indicators
      • Stablecoin Network Data
      • Stablecoin Exchange In/Outflow & Netflow
      • Stablecoin Exchange Reserve
      • Stablecoin Exchange Addresses Count
      • Stablecoin Exchange Transactions Count
      • Stablecoins Ratio
      • Stablecoin Supply Ratio (SSR)
    • Fund Data & Premium
      • Grayscale Bitcoin Trust (GBTC)
        • GBTC Digital Asset Holdings
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      • Grayscale Ethereum Trust (ETHE)
        • ETHE Digital Asset Holdings
        • ETHE Premium or Discount
      • Coinbase Premium
      • Korea Premium Index
      • Bank Supply Ratio
  • 🛠️Web3 Analytics Tool
    • Overview
    • Cohort Data Navigation
    • Query Data Navigation
    • How to Use(Query Tool)
      • 1. DateTime Aggregation
      • 2. Query Block - Metric
      • 3. Query Block - Where
      • 4. Query Block - Group by
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      • 6. Query Block - Order by
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On this page
  • On what basis would professional investors invest?
  • 1. MVRV (Market Value to Realized Value)
  • 2. NUPL (Net Unrealized Profit/Loss)
  • 3. LTH-SOPR(Long-term Holder Spent Output Profit Ratio)

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  1. QuickStart
  2. 5 Minute Data Guide

3 Key Indicators

Previous3 Key Market MetricsNextDeriving Insights

Last updated 1 year ago

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On what basis would professional investors invest?

Professional investors combine on-chain and market data to create indicators or signals designed to 'flash' or alert them before changes in prices occur. What would be the most popular indicator in CryptoQuant? Check 3 indicators that have been viewed the most.


1. MVRV (Market Value to Realized Value)

A valuation indicator to determine potential bubbles by analyzing cost basis

Long-term holders hold Bitcoins long enough until the price meets their return expectations before selling them. When selling Bitcoins, the transaction is made to other wallets through OTC deals or crypto exchanges, which can then be considered realized revenue. Realized Cap is the sum of all these transactions made in Bitcoins.

When there is a gap between Realized Cap and Market Cap, the MVRV number will increase, which can also be interpreted as unrealized profit or loss increasing. When the MVRV ratio increases above a certain threshold this means that the asset is overvalued. On the other hand, when the MVRV number decreases beyond a certain threshold, this can be interpreted as participants holding unrealized losses and that the asset is undervalued.

Generally, MVRV above 3.7 is considered overvalued, and below 1 is considered as undervalued.


2. NUPL (Net Unrealized Profit/Loss)

An indicator to determine the amount of unrealized profit/loss

NUPL uses Realized Cap to show the ratio of Unrealized Profit/Loss. If there is an increase in Unrealized Profit in the blockchain network, the probability of a price drop increases. Vice versa, if there is an increase in Unrealized Loss in the blockchain network, the probability of a price rise increases.

Generally, in the long term, NUPL above 0.75 is considered overvalued, and below 0 is considered undervalued.


3. LTH-SOPR(Long-term Holder Spent Output Profit Ratio)

An indicator to capture long-term holder's investment

Since Bitcoin trading is like using a check. Let's say John needs to give Jane $100. When John gives Jane $100 by using a $1K check, Jane receives a $1K check from John, creates a $900 check and $100 check from a $1K check, and returns a $900 check to John. The $1K check will then be disposed of. This kind of check system in Bitcoin is called UTXO(Unspent Transaction Output).

LTH-SOPR is an indicator of how much profit/loss is generated from UTXOs that have not been used for over 155 days. If the profit is greater using the UTXO(check), the LTH-SOPR value increases, and vice versa for the loss.

Generally, LTH-SOPR above 1 is considered long-term holders are making a profit, and below 1 is considered long-term holders are making a loss.


Further Notice

  1. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

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More details are in

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Click to view "Live MVRV chart"
Click to set "MVRV Preset Alert when BTC is overvalued"
Click to set "MVRV Preset Alert when BTC is undervalued"
Click to view "Live NUPL chart"
Click to set "NUPL Preset Alert when BTC is overvalued"
Click to set "NUPL Preset Alert when BTC is undervalued"
Click to view "Live LTH-SOPR chart"
Click to set "LTH-SOPR Preset Alert when BTC is overvalued"
Click to set "LTH-SOPR Preset Alert when BTC is undervalued"
CryptoQuant Data Guide