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Description

Realized Capitalization (Realized Cap) measures the value of each unit of a cryptocurrency based on the price at which it last moved on-chain. In contrast to Market Capitalization, which values all units at the current market price, Realized Cap reflects the collective cost basis of market participants. Realized Price is calculated as: Realized Price = Realized Cap / Supply This represents the average price paid for all circulating coins, based on the last time each coin moved on-chain.
  • When Realized Cap > Market Cap, the network is in an aggregate unrealized loss.
  • When Realized Cap < Market Cap, the network is in aggregate profit.
  • When Market Price > Realized Price, market participants are generally in profit.
  • When Market Price < Realized Price, participants are generally in loss.
Coverage includes Bitcoin (BTC) and Ethereum (ETH).

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Use Case

**Traders: **Realized Cap can help determine whether activity is primarily off-chain (e.g., on centralized exchanges) or on-chain (e.g., DEX transactions or wallet transfers). **Analysts: **Realized Cap and Realized Price provide insight into whether the market is in a phase of accumulation, profit-taking, or loss realization. **Researchers: **Realized Cap enables comparisons between the crypto market cycle and traditional assets by aligning network valuation trends with macroeconomic indicators or commodity cycles.

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Methodology

Realized Price = Realized Cap / Supply