Realized Capitalization

• From Coin Metrics #40 (3-3-2020):

"Realized capitalization represents a novel, cryptoasset-specific approach to valuation that has significantly advanced the field of on-chain analysis. Unlike market capitalization, which values each coin at its current price, realized capitalization values each coin at the time of its last on-chain movement. For example, if 10 BTC were last moved when BTC price was $1,000, those 10 BTC would collectively be valued at $10,000 (10 x $1,000). If 5 different BTC were last moved when the price was $10,000, those 5 BTC would be valued at $50,000 (5 x $10,000).

Under an additional assumption that each on-chain movement represents a transfer of ownership between a willing buyer and willing seller, such that the price at the time of the transfer represents the cost basis of the buyer, realized capitalization can also be interpreted as the aggregate cost basis of all holders. 

While UTXO age analysis is concerned about the age at which a coin was moved on-chain, realized capitazalition-based analysis is concerned with the price at which a coin was last moved on-chain."