Realized Value Basis

Definition ∞ Realized value basis is the aggregate cost at which all digital assets in circulation were last transacted on-chain. This metric represents the total value of a cryptocurrency’s supply, where each unit is valued at the price it was last moved from one address to another on the blockchain. It serves as a more accurate representation of the market’s collective cost basis compared to simple market capitalization, which uses the current price for all units. The realized value basis provides insights into the average price at which coins were acquired by their current holders, helping to gauge overall market profitability and investor sentiment.
Context ∞ Crypto news frequently uses realized value basis in on-chain analysis to identify periods of market capitulation or significant profit-taking. A key discussion involves its relationship with market price to determine if the market is trading above or below its aggregate cost basis, indicating potential overvaluation or undervaluation. Monitoring shifts in this metric offers crucial context for understanding long-term holder behavior and macro market cycles.