Definition
Market capitalization (or network value) is defined as the product of the current supply by the current USD price.
Realized Cap values different parts of the supplies at different prices (instead of using the current daily close). Specifically, it is computed by valuing each UTXO by the price when it was last moved.
Drawdown from ATH realized cap: (Source: Glassnode)
Drawdown from ATH: (Source: Glassnode)
Quick Take
Looking at the difference in drawdown from an all-time high (ATH) between market cap and realized cap. The 2022/23 bear market has seen the realized cap drawdown by -18.9% — the second worse drawdown historically. Market cap drawdown was the fourth worse at 76.9% — establishing a lower low.Drawdown from ATH realized cap: (Source: Glassnode)
Drawdown from ATH: (Source: Glassnode)
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