Wallet Metrics

Wallet Metrics describe the behavior, profitability, and efficiency of individual wallets or accounts interacting with blockchain assets.
They complement Coin Metrics by analyzing how traders, investors, and holders perform over time.
Each metric below includes a definition, an example, and an interpretation.

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Wallet Balance

Definition
The total market value (in USD or base currency) of all assets currently held by a wallet.
It aggregates the market prices of all tokens multiplied by their quantities.

$$\mathrm{Wallet}\mathrm{Balance}=\sum _{i=1}^n(P_{\text{current},i}\times Q_i)$$

Example
20 SOL at $150 + 0.2 BTC at $40,000 = $3,000 + $8,000 = $11,000.

Interpretation
Represents a wallet’s total portfolio value and overall exposure.
Used to classify wallets by size (retail, mid-tier, whale) and to analyze distribution of wealth across the network.

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Number of Total Trades

Definition
The count of all buy and sell transactions executed by a wallet during the observation period.
Each transaction is counted once regardless of size or asset.

$$\text{Total Trades}=N_{\text{buy}}+N_{\text{sell}}$$

Example
30 buy trades and 20 sell trades → 50 total trades.

Interpretation
Higher counts indicate an active trading strategy.
Low counts suggest passive or long-term investment behavior.

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Number of Trades Won / Lost

Definition
The total number of profitable (won) and unprofitable (lost) trades executed by a wallet.
A trade is considered a “win” if it closes with a positive realized gain.

$$\text{Wins}=\#(P_{\text{exit}}>P_{\text{entry}}),\text{Losses}=\#(P_{\text{exit}}<P_{\text{entry}})$$

Example
50 trades: 32 wins, 18 losses → Win Rate = 64%.

Interpretation
Indicates trade selection efficiency.
A high win rate combined with small profits may still underperform if losses are large, so this metric should be evaluated with profit factor or payoff ratios.

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Realized and Unrealized Gain (%)

Definition
The percentage gain or loss on both closed and open positions for the wallet.

$$\begin{array}{rl}\text{Realized Gain (\%)}& =\frac{\sum (P_{\text{exit}}-P_{\text{entry}})Q}{\sum P_{\text{entry}}Q}\times 100\\ \text{Unrealized Gain (\%)}& =\frac{\sum (P_{\text{current}}-P_{\text{entry}})Q}{\sum P_{\text{entry}}Q}\times 100\end{array}$$

Example
Bought 100 SOL @ $100, sold @ $150 → +50% realized.
Holding 50 SOL @ $120, current $140 → +16.7% unrealized.

Interpretation
Realized gains measure historical performance; unrealized gains show potential value if current holdings were liquidated.
Together, they represent the wallet’s cumulative profitability.

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Underwater Plot (Drawdown)

Definition
Tracks how far a wallet’s balance has fallen below its previous peak over time.
Each point measures the percentage drawdown from the highest historical value.

$${\mathrm{Drawdown}}_t=\frac{P_t-P_{\text{peak}}}{P_{\text{peak}}}\times 100$$

Example
Peak balance = $10,000; current = $8,000 → Drawdown = −20%.

Interpretation
Shows the depth and frequency of losses.
Persistent or deep drawdowns indicate higher risk exposure and lower recovery speed.
Used to visualize equity curve health.

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Average Holding Period

Definition
The average duration that assets are held before being sold or transferred out.
It measures whether a wallet behaves as a trader or investor.

$$\text{Average Holding Period}=\frac{\sum H_i}{N}$$

where $H_i=$ duration of trade i.

Example
Three trades held for 9, 3, and 5 days → ( (9+3+5)/3 = 5.67 ) days.

Interpretation
Shorter periods indicate active trading or speculation.
Longer holding periods suggest accumulation or investment behavior.

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Average Holding Period When Winning

Definition
Average time held for profitable trades only.
It reveals how long traders allow profits to run.

$$\text{Average Win Holding}=\frac{\sum H_i^{(win)}}{N_{win}}$$

Example
Profitable trades held for 4 and 10 days → Average = 7 days.

Interpretation
A short win-holding time may imply early profit-taking; a long one suggests patience and trend-following.

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Average Holding Period When Losing

Definition
Average time held for losing trades only.
It highlights how long traders keep losing positions open.

$$\text{Average Loss Holding}=\frac{\sum H_i^{(loss)}}{N_{loss}}$$

Example
Losing trades held for 2 and 10 days → Average = 6 days.

Interpretation
Holding losses longer than wins often signals poor discipline or emotional bias (hope to recover).
Healthy behavior typically involves shorter losing durations.

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Average Market Cap When Buying

Definition
Average market capitalization of tokens purchased by the wallet.
It shows preference for large-cap versus small-cap assets.

$$\text{Avg Market Cap}=\frac{\sum MCA{P}_i}{N_{\text{buys}}}$$

Example
BTC $800B, ETH $200B, SOL $40B → ( (800 + 200 + 40)/3 = 346.7B ).

Interpretation
Higher values mean focus on established assets (lower risk).
Lower values imply preference for emerging or speculative assets.

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Win Percentage

Definition
Percentage of all trades that closed profitably.

$$\text{Win \%}=\frac{N_{\text{win}}}{N_{\text{total}}}\times 100$$

Example
6 profitable out of 10 → 60%.

Interpretation
Higher win rates show consistent trade selection, but the payoff ratio (average win/average loss) must also be analyzed to assess overall profitability.

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Max Consecutive Wins / Losses

Definition
The longest uninterrupted streaks of profitable or losing trades.

Example
Two consecutive wins, three consecutive losses.

Interpretation
Reveals volatility in performance.
Frequent long losing streaks may indicate insufficient diversification or overconfidence in a single strategy.

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Gain / Pain Ratio

Definition
Ratio of total gains to total losses over the observation window.

$$\text{Gain/Pain}=\frac{\sum \text{Gains}}{\sum |\text{Losses}|}$$

Example
Gains = 0.105, Losses = 0.075 → Ratio = 1.4.

Interpretation
Values > 1 indicate net profitability.
Higher ratios show efficient risk management; values below 1 imply unprofitable or poorly controlled losses.

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Profit Factor

Definition
The ratio of total positive returns to total negative returns, similar to Gain/Pain but applied to discrete trade results.

$$\text{Profit Factor}=\frac{\text{Total Profits}}{|\text{Total Losses}|}$$

Example
Profits = 0.105, Losses = 0.075 → 1.4.

Interpretation
$>1=$ profitable trading pattern; $<1=$ losing system.
Commonly used in backtesting and performance scoring.

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Common Sense Ratio (CSR)

Definition
Compares downside volatility to upside volatility.
A CSR near 1 implies symmetry; >1 means larger downside moves.

$$\mathrm{CSR}=\frac{{\sigma }_{\text{down}}}{{\sigma }_{\text{up}}}$$

Example
${\sigma }_{\text{down}}=2.0\%$, ${\sigma }_{\text{up}}=1.5\%\to CSR=1.33$.

Interpretation
Higher CSR → downside risk dominates returns.
Lower CSR → upside moves are more volatile (preferable for traders).

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CPC Index

Definition
CPC (Consistency of Profitable Contributions) measures the stability of profitability by dividing the Profit Factor by the Payoff Ratio.

$$\mathrm{CPC}=\frac{\mathrm{Profit}\mathrm{Factor}}{\mathrm{Payoff}\mathrm{Ratio}}$$

Example
Profit Factor = 1.4, Payoff Ratio = 0.93 → CPC = 1.5.

Interpretation
Higher CPC = consistent profitability and well-balanced trade sizing.
Lower CPC indicates unstable results or inconsistent risk allocation.

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Tail Ratio

Definition
Ratio comparing the size of large positive returns (95th percentile) to large negative returns (5th percentile).

$$\mathrm{Tail}\mathrm{Ratio}=\frac{r_{95}}{|r_5|}$$

Example
$r_{9}5=0.03,r_5=-0.03\to 1.0$.

Interpretation
$>1$ → upside moves exceed downside extremes.
$<1$ → losses dominate, indicating negative skew or crash sensitivity.

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Outlier Win / Loss Ratios

Definition
Compares the magnitude of the largest winning and losing trades to their respective averages.

$$\mathrm{Outlier}\mathrm{Win}=\frac{\max (r_i^{(win)})}{{\bar{r}}^{(win)}},\mathrm{Outlier}\mathrm{Loss}=\frac{|\min (r_i^{(loss)})|}{|{\bar{r}}^{(loss)}|}$$

Example
Max win = 0.03, Avg gain = 0.0175 → 1.71×.
Max loss = −0.03, Avg loss = −0.01875 → 1.60×.

Interpretation
High ratios = heavy tails (occasional extreme events).
Used to assess risk of catastrophic loss or rare windfall trades.

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Drawdown Metrics (Average, Duration, Recovery)

Definition
Drawdown measures how much the portfolio falls from its peak; duration measures time to recovery; recovery factor compares total gain to the maximum drawdown.

$$\text{Recovery Factor}=\frac{\text{Cumulative Return}}{|\text{Max Drawdown}|}$$

Example
Cumulative return = +142%, Max DD = −33.7% → Recovery Factor = 4.22.

Interpretation
Higher recovery factor → better resilience and recovery speed after losses.
Average drawdown shows normal volatility; duration indicates patience required for recovery.

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Serenity Index

Definition
Risk-adjusted performance metric combining growth (CAGR) and stability (Ulcer Index).
It quantifies how smooth a wallet’s equity curve is.

$$\mathrm{Serenity}=\frac{\mathrm{CAGR}}{\mathrm{Ulcer}\mathrm{Index}}$$

Example
CAGR = 10.9%, UI = 0.07 → Serenity = 1.61.

Interpretation
Higher Serenity = consistent, smooth growth with limited drawdowns.
Lower Serenity = erratic performance, frequent equity dips.