Definition ∞ Realized Price is a metric used in cryptocurrency analysis that calculates the average acquisition cost of all coins that have been moved on the blockchain. It represents the price at which all coins were last transacted, effectively summing up the purchase prices of all tokens and dividing by the total number of tokens. This metric is considered a more stable indicator of market value than the current spot price, as it reflects the actual cost basis of investors. It is frequently used to identify potential market bottoms or tops.
Context ∞ The concept of realized price is a key analytical tool frequently referenced in cryptocurrency market commentary and news. Discussions often center on its relationship with the current market price to gauge whether the average investor is in profit or loss territory. Recent analyses might highlight periods where the market price crosses below the realized price as a signal of potential undervaluation, or conversely, when it significantly exceeds realized price, suggesting a potential market peak.
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