aSOPR (Adjusted SOPR)
Adjusted SOPR filters out all UTXOs with a lifespan of less than an hour from the SOPR metric to better reflect economically meaningful activity on-chain.
Adjusted SOPR (aSOPR) filters out all UTXOs with a lifespan of less than an hour, thereby eliminating obvious relay transactions. This in turn, this provides a more accurate signal of actual sale/purchase transactions, and better captures economically meaningful activity.
The SOPR metric is sensitive to the aggregate profit and loss realised by UTXOs spent on-chain. In the Spent Output Age Bands chart below, we filter to show only spent coins with a lifespan less than 1hr. This demonstrates that coins with <1hr lifespans consistently represent between 20% and 40% of daily network traffic. Given their short lifespan, these coins generally do not realise significant profit, nor loss, however do dilute the aggregate profit and loss.
This influences the signal of the standard SOPR metric whereby a significant portion of the volume realises a negligible profit/loss, and therefore the magnitude and responsiveness of SOPR is dampened. By removing relay transactions, the realised profit and loss calculated by the aSOPR metric is more responsive, and generally of greater magnitude than the equivalent SOPR. The chart below compares aSOPR (orange) to SOPR (blue) to demonstrate this effect.
aSOPR is generally considered a more accurate representation of the aggregate profit and loss that is realised by coins that are changing hands.