Murphy Explains the Method for Calculating Hours for the Crypto Supply Proportion

The cryptocurrency community is discussing a new approach shared by KOL Murphy regarding the calculation of supply proportions in the digital market. In his post on X, Murphy details how supply metrics can be determined more accurately using exchange order book data within a 5% range of the spot price. This explanation is important because it highlights the fundamental differences between various methodologies used in crypto market analysis.

Order Book-Based Calculation Method

Murphy emphasizes that the hourly calculations he uses are directly sourced from exchange order book data, rather than using the Visible Range Volume Profile (VPVR) approach. The choice of this method is not without reason—order books provide a real-time view of market depth and demand-supply distribution at specific price levels. By focusing on the 5% range from the spot price, analysts can identify significant liquidity concentration zones where supply is most heavily concentrated.

The difference between order books and VPVR is quite substantial. While VPVR measures volume visible within historical price ranges, Murphy’s order book approach is more responsive to current market dynamics. This means the hourly calculations produced reflect a more accurate and reliable market liquidity condition for short-term trading decisions.

Implications for Understanding the Cryptocurrency Market

Murphy’s clarification offers valuable insights for traders and analysts seeking to understand how supply metrics are technically determined. By using an order book-based methodology in their hourly calculations, market professionals can make more precise analyses of supply structures in cryptocurrencies. This approach demonstrates that in the modern era of blockchain analysis and digital markets, precision in data source selection is just as important as the sophistication of analytical models themselves.