Realized Value Ratio

Definition ∞ The Realized Value Ratio is an on-chain metric that contrasts a digital asset’s market capitalization with its realized capitalization. Realized capitalization reflects the aggregate price at which each coin last moved on the blockchain. It provides insight into investor cost basis.
Context ∞ This ratio is a valuable tool for assessing overall market sentiment and identifying periods of potential undervaluation or overvaluation within the digital asset market. It can also signal significant market bottoms or tops, indicating capitulation or euphoria among investors. Analysts use it to gauge market health.