Calculation

SOPR is calculated simply as (Price sold / Price bought)

SOPR values

There are three possible values of SOPR.

1. SOPR > 1

   • The coin holder made a profit.
   • The selling price is higher than the buying price

2. SOPR < 1

   • The coin holder made a loss.
   • Based on the formula above the selling price is lower than the buying price

3. SOPR = 1

   • The coin holder made no profit or loss.

Here is an example of ETH SOPR:

Indication by SOPR

What does this SOPR indicate?

• In general, higher SOPR values indicate that more profit was realised that day. Successive peaks of high SOPR (creating an indicator uptrend) suggest continual distribution, usually during bullish price rallies.
• A lower SOPR indicates fear and panic selling in the market.

References

• Glassnode
• Introducing SOPR by Renato Shirakashi