Realized Cap is a market capitalization metric that calculates the total value of a cryptocurrency based on the price at which each coin was last moved on the blockchain. It offers a more accurate valuation than market capitalization, which uses the current price for all coins, by accounting for the cost basis of holders. This metric is particularly useful for assessing market tops and bottoms.
Context
Discussions concerning Realized Cap often focus on its use as a tool to identify potential market cycle peaks and troughs, contrasting it with the current market capitalization. Analysts are observing whether the current price is trading above or below the realized price, which can signal overvaluation or undervaluation. Divergences between realized cap and market cap are frequently cited as indicators of investor conviction.
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