The Puell Multiple is calculated by dividing the daily token issuance value (in USD) by its 365-day moving average.
The daily issuance refers to new coins miners add to the ecosystem as block rewards. Miners typically sell these coins to cover operational costs.
When the Puell Multiple is within the range of 0.3–0.5, historical data has shown that markets often experience lower relative valuations.
In the 0.5–3.5 range, the market has historically been more active.
When the Puell Multiple exceeds 3.5, it may indicate elevated market valuations and higher likelihood of short-term corrections.
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