Realized cap resilience refers to the ability of a digital asset’s realized capitalization to maintain its value during market downturns. Realized capitalization measures the value of all coins or tokens at the price they were last moved on-chain, offering a more stable valuation metric than market capitalization. Resilience in this context indicates that the aggregate cost basis of the asset’s holders does not significantly degrade despite price volatility. It suggests a strong underlying support level from investors who acquired assets at higher prices and are holding them.
Context
In cryptocurrency markets, realized cap resilience is an important on-chain metric for assessing the strength of investor conviction and potential market bottoms. News reports frequently analyze its behavior during bear markets, looking for signs that the aggregate cost basis of holders is holding firm. A high degree of resilience suggests that long-term investors are not capitulating, providing a more robust foundation for a potential price recovery.
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