Realized Price vs Market Capitalization: Unpacking Crypto Cost Basis

Crypto analysts use realized price and market capitalization to gauge unrealized profit and loss in the crypto market.

Realized price is an on-chain estimate of a network's aggregate cost basis, calculated by dividing realized capitalization by circulating supply. It represents the average price at which the supply last changed hands on-chain.

Moving averages of realized price are smoother and slower-moving than spot prices because they only update when coins move on-chain.