Another new milestone for bitcoin! Bitcoin has measured the highest realized cap ever. You can see that in the image below. The realized cap is more than $ 93 billion and continues to rise. That is already more than the high point in 2018:
You may not be saying this, and that is not surprising at all. The realized cap is in fact an indicator where not much is written about. The realized cap can nevertheless give you useful information. You can read how that works below.
Why the market cap does not fit into the cryptomarket
In many cases the market cap is used as a measuring instrument for the total market value of bitcoin. The market cap is an indicator that has blown over from the stock world. You calculate it this way: the number of crypto coins multiplied by the price of one crypto coin.
But this causes a few problems in the crypto world. There are many cryptocurrency exchanges where you can buy bitcoin, each with its own price. In addition, every cryptocurrency works with a different pattern with regard to the issuance of the coin. For example, there are now almost 18 million bitcoins, and there are more than 42 billion XRP in circulation. An average of 12.5 new bitcoin is also released once every ten minutes, at XRP the central party The Ripple Foundation manages the coins, they can determine how many coins enter the market when.
About the realized cap
That is why another indicator has come into existence; the realized cap. This indicator includes the price at which a coin was last traded. This price is then multiplied by the number of coins that have been traded. This gives this measuring instrument a completely different picture than the market cap.
For example, look at the situation at the end of 2017. The value of bitcoin rose to more than 19,000 dollars at that time. Nevertheless, investors bought in on average for $ 5,000 to $ 6,000. So at the peak, less was shifted on the bitcoin blockchain. You can hardly or only barely get that kind of information from the market cap alone.
At the time of writing, the realized cap is higher than ever, and has been rising again since April this year. That is a positive signal for bitcoin, the bull market is still in full swing.