Realized Cap
Realized cap is an on-chain valuation that prices every unspent coin at the price it had when it last moved, then adds them up. It approximates the total cost basis of all holders, rather than what the supply would be worth at today's price.
How realized cap is calculated
Market cap multiplies the whole circulating supply by the latest price. Realized cap instead looks at each unspent transaction output (UTXO) on the chain, takes the price at the moment that UTXO was created, multiplies it by the UTXO's amount, and sums the results.
The metric was introduced in 2018 by Nic Carter and Antoine Le Calvez of the data firm Coin Metrics. Because every on-chain move re-prices the coins involved, realized cap only changes when coins actually move, and it rises when coins bought cheaply are spent at higher prices.
A worked example
Imagine a tiny network with three outputs: 10 coins last moved at 1,000 dollars, 5 coins at 20,000 dollars and 5 coins at 60,000 dollars. Realized cap is 10,000 plus 100,000 plus 300,000, which equals 410,000 dollars. If the current price is 50,000 dollars, market cap is 20 coins times 50,000, or 1,000,000 dollars.
Dividing realized cap by supply gives the realized price, here 20,500 dollars: a rough average on-chain cost basis per coin.
What analysts use it for
The most common derived metric is MVRV, market value to realized value. In the example it is 1,000,000 divided by 410,000, about 2.4, meaning holders as a group sit on large unrealized gains. In Bitcoin's history, readings well above 3 have tended to occur near cycle peaks and readings below 1, where the price is under the average cost basis, near deep bear markets. Changes in realized cap itself are read as capital flowing into or out of the network, since it climbs when coins change hands at higher prices.
Realized cap also partly addresses lost coins: bitcoins that have not moved since the early years are still counted, but at the very low prices of that time, so they barely affect the total.
Limits to keep in mind
The last on-chain move is not always a purchase. Exchange-internal transfers, custody changes and wallet consolidations re-price coins without any trade, and many trades happen off-chain on exchange ledgers without touching the blockchain at all. Price data at the time of each move is an approximation. Past MVRV levels are historical patterns, not thresholds the market must respect.
Ask Coach about it
Coach is the AI on AtenaCrypto. It explains crypto with live market data, in plain words.
How is MVRV calculated from realized cap, and how has it behaved across past Bitcoin cycles?Ask Coach →
Frequently asked questions
What is the difference between market cap and realized cap?
Market cap values all coins at the latest price. Realized cap values each coin at the price when it last moved on-chain, approximating what holders actually paid.
What is realized price?
It is realized cap divided by the circulating supply, an estimate of the average on-chain cost basis per coin.
Can realized cap fall?
Yes. When coins that last moved at high prices are spent at lower prices, their contribution is re-priced downward, so realized cap can shrink during sustained declines.
Related terms
Lessons on this topic
Learn it step by step
AC Learning explains these ideas in interactive lessons — the first eight sections are free.
Open AC Learning → Create a free accountAll glossary terms · Educational reference only — not investment, legal, tax or financial advice.