Cost basis aggregated across all holders
Realized cap values each circulating coin at the price it last moved, then sums these values. Unlike market cap, which applies the current price to all coins uniformly, realized cap preserves the acquisition cost of each unit. If most coins were accumulated at low prices and only a fraction at current highs, realized cap sits well below market cap. This difference reveals whether the network is mostly held by early, profitable investors or recent, underwater buyers.
Realized cap as a floor and accumulation signal
Realized cap often serves as a soft floor during bear markets because holders resist selling far below their cost basis. When market cap approaches realized cap, the network is nearing the point where all holders are underwater or at breakeven, a level that typically triggers capitulation selling. Conversely, when realized cap is far below market cap, it indicates strong unrealized profits across the network. Accumulation phases often see market cap and realized cap converge, suggesting new capital is being deployed at higher costs.