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.