Realized Value Distribution

Definition ∞ Realized value distribution measures how the economic value of a digital asset is spread across its holders based on their acquisition prices. This on-chain metric assesses the total value of all coins at the price they last moved, providing insight into the aggregated cost basis of the market. Analyzing its distribution reveals segments of the market that are currently holding profits or losses. It helps identify patterns of wealth concentration or dispersion among different investor cohorts, reflecting overall market health and sentiment.
Context ∞ Realized value distribution is a key on-chain analytical tool used to understand the financial positions of various market participants in cryptocurrency. Discussions often relate to identifying potential selling pressure from profitable holders or accumulation by those with unrealized losses. News reports frequently reference this metric to gauge market sentiment and predict potential support or resistance levels based on investor behavior.