Realized capitalization growth measures the increase in the total value of all coins or tokens in circulation, calculated at the price they were last moved on-chain. This metric offers a more stable and accurate assessment of capital inflows and investor cost basis compared to simple market capitalization. It indicates genuine capital accumulation and provides insight into the long-term investment sentiment within a digital asset market. Consistent growth suggests increasing network value.
Context
Realized capitalization is a sophisticated on-chain metric used by analysts to gauge the underlying value and health of a cryptocurrency network. Unlike fluctuating market capitalization, which reacts to current prices, realized capitalization reflects the aggregate capital committed by investors over time. Sustained growth in this metric suggests a strengthening market base and increasing confidence among long-term holders. It serves as a valuable tool for distinguishing speculative rallies from fundamental value appreciation.
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