Description

Realized capitalization (Cap) is the value of each asset based on the price it was last moved, and realized price is simply Realized Cap / supply.

The Realized Cap can be used as an alternative to Market Cap, where the realized cap is the price of all assets at the last time they moved while the market cap is the price of all assets at the current price. Realized cap can also represent the value of all coins in the network, and can serve as an aggregate cost basis for the network.

When Realized Cap > Market Cap, the network is out of profit and is in an aggregate loss. When Realized Cap < Market Cap, the network is in profit and is in an aggregate profit.

When Market Price > Realized Price, market participants are in profit. When Market Price < Realized Price, market participants are in loss.

We cover ETH and BTC realized price.

Use Case

Trader

The trader can use realized cap to know if the market is trading on offchain (on exchanges) or transacting onchain (with DEXes or transferring tokens)

Analyst

The analyst can use realized cap as a measure of what stage the market is in (in profit or in loss, token accumulation or divesting).

Researcher

The researcher can use realized cap to compare the stage of the market (in profit or in loss) with outside sources such as the price movements and market cap of other commodities.

Methodology

Realized Price = Realized cap / Supply