Realized Cap Increase

Definition ∞ Realized cap increase signifies an increase in the realized capitalization of a cryptocurrency, which calculates market value based on the price each coin last moved on-chain. This metric reflects a net inflow of capital into the asset at higher prices, indicating that a larger portion of the supply has been acquired by investors willing to hold at current or higher valuations. It signifies conviction among holders.
Context ∞ News often cites realized cap increase as a robust indicator of market strength and investor confidence, particularly during periods of price appreciation. A rising realized cap suggests that capital is entering the asset and being held, reducing the likelihood of immediate selling pressure. This metric is a key tool for on-chain analysts to gauge the overall health of a digital asset’s market structure.