Market Value to Realized Value Ratio

Overview

This indicator measures the ratio of a cryptocurrency's market capitalization to the average purchasing cost of each address holding the asset. The indicator determines the total market capitalization of the asset, which is the price of the asset times the total supply. Then, the average purchasing cost per address is computed by dividing the total cost of all transactions by the number of unique addresses.

💡 How can I use it?

This indicator can provide insight into the profitability of the average investor. A higher ratio suggests that the current market value of the asset significantly exceeds the average purchase cost, indicating that most holders are in profit. Conversely, a lower ratio may suggest that many holders are at a loss.