Hi friends, Bitcoin has just set a new all-time-high (ATH) record for realized market cap or “active money.” This means BTC holds more capital today than it did during the April price peak.
As per a report from Arcane Research, Bitcoin has just set a new record for “active money” in the network. What is this “active money” or “realized market cap”? Well, to understand the concept, it’s worth taking a look at the normal market cap indicator first.
The market cap of BTC (or any other asset) is calculated by taking the total amount of coins in the network and multiplying it with the current price.
The realized market cap, on the other hand, doesn’t use all the available circulating supply for calculation. Rather, this indicator measures the total “active money” in the Bitcoin network.
All the capital that hasn’t moved for an extended period of time is considered dormant or “inactive money.” All the remaining coins that have moved hands recently are the “active money.”
