, 2022-12-12 12:44:00,
An analysis of market cap and realized cap Bitcoin dominance (BTC.D) data performed by CryptoSlate suggests that users are increasingly using stablecoins, instead of BTC, as a safety flight.
Most are familiar with market cap, which is calculated by multiplying the circulating supply by the current token price.
Realized cap is also a valuation metric but differs from the market cap by substituting the current token price with the price at the time the token last moved. This method is said to give a more accurate measure of valuation as it considers and minimizes the effect of lost and irretrievable coins.
Glassnode estimated hodled or lost coins currently come in at around 7 million tokens, representing a significant proportion of the circulating supply.
If a token has never moved the realized price of that token is zero, and if a token has not moved in a long time its impact is recorded at a much lower price than the current price. Therefore, active tokens make up the bulk of the realized cap valuation, giving a more holistic and representative figure versus market cap.
However, realized cap does not differentiate between tokens that are lost/irretrievable and those that are in deep storage. Therefore, while it does de-emphasize the impact of lost/irretrievable coins, it is still not a perfect valuation measure.
Despite that, market cap is much more widely used than realized cap. For example in the calculation of BTC.D.
Bitcoin market dominance
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