Bitcoin On-chain Metrics

The database contained within Bitcoin and other digital

asset ledgers is transparent, allowing analysts and data

providers to inspect the aggregate transactions and

volumes across the network. This allows the

pricestamping of each coin based on the time when it

last moved on-chain. Pricestamping also enables

analysts to calculate the average cost basis for all coins

in the supply and to determine the proportion of the

supply held “in-profit” or “in-loss.”

The Realized Cap is an important on-chain metric for

Bitcoin as it captures the aggregate value of all coins,

priced at the time they last transacted on-chain. In

many ways it is analogous to a form of “on-chain market

cap.” The Realized Cap is currently at $591 billion,

providing a measure of the cumulative capital inflows

into Bitcoin over the course of its history.

Historically, the spot Market Cap has traded near or

below the Realized Cap during late-stage bear markets,

signifying that the average coin is held at an unrealized

loss. We can also identify periods where the Market Cap

diverges higher than the Realized Cap during uptrends,

signifying the average coin is holding an increasingly

large unrealized profit.