The following is an excerpt from a recent issue of Bitcoin Magazine Pro, Bitcoin Magazine’s premium markets newsletter. Sign up now to be among the first to get these insights and other on-chain bitcoin market analysis straight to your inbox.

Today we provide a detailed breakdown of realized market cap. Traditional asset classes, along with Bitcoin itself, are often quoted in terms of their market cap, which is calculated by taking the product of price and circulating supply. With Bitcoin and the introduction of a fully transparent set of ownership rights, you can calculate the realized market capitalization that values ​​each supply unit at the price at which it was last moved across the network.

Bitcoin’s realized market cap is one of the best ways to quantify the asset’s monetization process, as the asset’s notorious volatility appears to only occur to the upside. Fluctuations in the exchange rate are not nearly as volatile as the gradual and then sudden increase in the asset’s realized market value.

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