Definition ∞ Realized Value Metric is an on-chain analytical tool that assesses the aggregate cost basis of all digital assets currently in circulation, based on the price at which each unit last moved on the blockchain. Unlike market capitalization, which uses the current price, realized value accounts for the price at the time of each transaction. This metric provides a more conservative and historically grounded valuation of the network’s total holdings. It helps to differentiate between speculative market value and the actual economic cost of acquired assets.
Context ∞ In crypto news, the Realized Value Metric is often used to gauge long-term market sentiment and identify potential support or resistance levels for digital asset prices. When the market price falls below the realized value, it can signal a period of capitulation, where the average holder is at a loss. Conversely, when market price significantly exceeds realized value, it may suggest an overheated market.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
