Realized Cap
Definition
Realized Cap values every coin at the price of its last on-chain movement, rather than the current market price. It represents the aggregate cost basis of the network and is often lower than market cap. Realized Cap is used in the MVRV ratio (Market Value / Realized Value) — a powerful valuation metric. When market cap drops below realized cap (MVRV < 1), it historically marks deep value zones and cycle bottoms.
Why Does This Matter?
Understanding Realized Cap is essential for anyone investing in cryptocurrencies or working with blockchain technology. This concept directly influences how projects are valued, how markets behave, and what risks and opportunities exist for investors.
How Does CryptoValue Use This?
At CryptoValue, fundamental concepts like Realized Cap feed into our proprietary Value Score — a rating from 0 to 100 based on 10 on-chain and market metrics. Our goal is to help you identify undervalued and overvalued coins, rather than just looking at price.