Realized Cap Metric

Definition ∞ The realized cap metric is an on-chain valuation method for cryptocurrencies that calculates the total value of all coins at the price they last moved on the blockchain. Unlike market capitalization, which uses the current price for all coins, realized cap provides a more accurate representation of the capital held by long-term investors. It helps assess the aggregate cost basis of the circulating supply. This metric offers insights into overall market profitability and investor behavior.
Context ∞ Crypto news and analytical reports frequently employ the realized cap metric to gauge market cycles and investor sentiment. Comparisons between market cap and realized cap can indicate whether the market is currently in profit or loss. This metric is a key tool for understanding the underlying economic state of a digital asset network.