Bitcoin’s (BTC) realized capitalization, an on-chain metric that measures the value of coins at the price they last transacted, has continued rising even as the spot price drops, signaling investor conviction to the network and suggesting the economic backbone of the largest cryptocurrency is strengthening.
After first crossing $1 trillion in July, Glassnode data shows that realized cap now sits at a record $1.05 trillion, despite the spot price slipping around 12% from its all-time peak near $124,000. While market capitalization falls as the spot price declines because it prices every coin at the current level, realized cap adjusts only when coins are spent and repriced on-chain.
What to know:
- Bitcoin’s realized cap, which calculates the value of tokens during movements, rose past $1 trillion in July and now stands at a record $1.05 trillion.
- The surge contrasts with a fall in market cap, which revalues all tokens based on the spot price.
- The metric offers insights into the commitment of Bitcoin investors.
Under the realized cap model, non-active holdings, long-term investors, and lost coins serve as stabilizers, reducing large drawdowns even when short-term price movements turn negative. This results in a measure that more accurately reflects actual investor conviction and the depth of capital committed to the blockchain.
In earlier cycles, realized cap experienced much sharper declines. During the 2014-15 and 2018 bear markets, it fell by as much as 20% due to prolonged capitulation that forced large volumes of coins to be repriced lower. Even in 2022, the metric saw a drawdown nearing 18%. However, this cycle has seen realized cap increase despite a double-digit price correction, demonstrating how the current market is absorbing volatility with a more resilient base.
