According to data from metrics site Glassnode, Bitcoin’s “realized” market capitalization reached an all-time high of $378 billion today.
The size of Bitcoin’s active market cap is measured by realized market cap. The calculation disregards Bitcoin stashes that haven’t changed hands in a long time, such as the dormant fortunes of Bitcoin creator Satoshi Nakamoto, whales, lost coins, or long-term HODLers.
Data metrics platforms such as Glassnode assign time-sensitive values to coins in order to calculate realized market cap. If a coin last moved in 2018, when the price of Bitcoin was $6,000, it is still priced at that level rather than today’s price.
The standard method of calculating market capitalization is to multiply all coins in circulation by the current coin price. According to CoinGecko, the total market capitalization of Bitcoin is $880 billion.
The realized market cap gives a more accurate estimate of the size of the “active” Bitcoin market. The fact that Bitcoin’s realized market cap has reached an all-time high while the price is still far from its all-time high of $64,800 suggests that there has never been as much “active” money in Bitcoin.
The increase in realized market cap comes as Bitcoin reaches $48,000, its highest price since the market crash began in mid-May. Bitcoin is up 9.5 percent this week and 42.5 percent so far this month. Bitcoin plummeted to $46,700 shortly after reaching $48,000.
Another indicator of the uproar is Bitcoin’s most recent mining difficulty adjustment. The Bitcoin network made mining 7.3 percent more difficult yesterday in its latest fortnightly change to account for increased competition among miners.
After two months of drops, the adjustment was the second consecutive positive change; the drops were caused by a crackdown on Bitcoin mining in China, which also cut Bitcoin’s price in half. Today’s all-time high for Bitcoin’s realized market cap demonstrates that traders are reclaiming their coin.