Introducing Realized Capitalization

The motivation for the creation of Realized Cap was the realization that “Market Capitalization” is often an empty metric when applied to cryptocurrencies. Market Capitalization, borrowed from the world of equities, is calculated for cryptocurrencies as

circulating supply * latest market price

However, unlike with equities, large fractions of cryptocurrencies tend to get lost, go unclaimed, or become otherwise inert through bugs.

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Thoughts on ratios

Coinmetrics was created to publish hard-to-acquire data about major public blockchains, and to promote some ratios we thought were instructive. Since the founding of this website, the field of cryptoasset valuation has matured and grown significantly. The cryptoassets in question also continue to grow and change, meriting thoughtfulness about various analytical tools. While users are more empowered than ever, uncertainty remains about a) whether ratio analysis is appropriate, b) how to interpret major ratios, and c) the shortcomings of such analyses. In this piece, we’ll discuss ratio analysis and discuss its shortcomings and some common mistakes. As always, we urge skepticism and restraint in the interpretation of our data.

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