The Bitcoin Realized Cap Has Reached a New High, According to Glassnode

A new all-time high has been set for Bitcoin... But not in terms of price, but rather in terms of realized Market capitalization, which is fantastic news for the ecosystem.


Whoever assumed bearish sentiment would kill Bitcoin was dead wrong. Furthermore, according to one metric, Bitcoin is now more valuable to the ecosystem than it has ever been, including during its all-time high.

The overall “realized” market capitalization of Bitcoin has now surpassed the figures recorded in April 2021, when its price peaked.


BTC reached a realized cap of $378,768,190,450.72 just a few hours ago, according to blockchain analytics company Glassnode.

ATH of $378,768,190,450.72 for #Bitcoin $BTC Realized Cap

— August 14, 2021, from glassnode notifications (@glassnodealerts)

Why is Bitcoin's Realized Cap Important?

The realized cap is a technique to get a bit more “real” or honest picture of how much money has moved in Bitcoin. The market capitalization of a cryptocurrency is calculated by multiplying the current price of one Bitcoin by the total number of Bitcoins in circulation.

The realized cap, on the other hand, aims to total the value of each Bitcoin token at the time it was last moved. As a result, coins moved during the April ATH will be multiplied by 60K, while coins moved during the 2017 peak will be multiplied by $21K.

This gives a more accurate representation of the value that is going through the network. Satoshi's coins, for example, or coins that have been lost, do not have the same weight as the coins used this week to complete transactions.

The fact that Bitcoin now has a bigger realized capitalization than it had during the April ATH is a sign of optimism, since it signals increased network activity, which could indicate greater acceptance or even confidence in BTC as a means of exchange.

Furthermore, Bitcoin's market capitalization has increased as the token's price rises and rebounds after a crash that saw it fall below $30k; yet, it remains well behind its all-time high of $1.1T. The overall cryptocurrency market capitalization surpassed $2 trillion earlier this week.

BTC Continues to Improve

Other factors support Bitcoin's maturation as a financial asset.

To improve the network's security and efficiency, the Core developers just released the Taproot upgrade. Taproot, in a nutshell, allows you to combine many signatures into a single master key, making transactions more private and requiring fewer fees.

By the end of the year, this improvement will be finished.

Separately, the last mining difficulty change is also encouraging. A network with a higher mining difficulty has a higher level of security. This also suggests that the Chinese crackdown is coming to an end, and Bitcoin miners are seeking for other ways to continue their work.

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