Definition ∞ The realized price metric calculates the average price at which all units of a cryptocurrency last moved on-chain. This provides a cost basis for the entire supply, offering a more accurate reflection of the market’s aggregate acquisition price than simple market capitalization. It helps determine the overall profitability of the asset’s holders.
Context ∞ On-chain analysts use the realized price metric to identify macro market cycles and determine periods of capitulation or strong holder conviction. When the market price falls below the realized price, it suggests that the average holder is at a loss, historically signaling potential market bottoms. This metric is a powerful tool for assessing long-term market sentiment and investor behavior.
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