Metrics site Glassnode has revealed that the “realized” market cap of Bitcoin reached an ATH of $378 billion today.
Realized market cap refers to the measuring of the size of Bitcoin’s active market cap. This measurement doesn’t take into consideration the stashes of Bitcoin that haven’t been traded for a long time, such as the reserves of Satoshi Nakamoto, lost coins, whales, or long-time HODLers.
In order to calculate realized market cap, platforms such as Glassnode assign time-sensitive values to coins. For example, in the case that a coin was last moved in 2018 when Bitcoin was worth $6,000, the coin is priced as having the same value today, and not the actual price of the day.
The standard measurement of the market cap represents a multiplication of all the coins that are currently in circulation by the current price of the cryptocurrency. As of now, the total market cap of Bitcoin is $880 billion.
The realized market cap offers a better estimation of the size of the “active” Bitcoin market.
The fact that the realized market cap for Bitcoin reached an ATH at a time when the price of Bitcoin is still far from its ATH of $64,800 means that there’s never been as much “active” money in Bitcoin.
This increase in the realized market cap comes just as Bitcoin reached $48,000, the highest level it has seen since the middle of May. The King of Crypto saw a growth of 9.5% this week and 42.5% this month.
Source: Decrypt.co