realized capitalization

Bitcoin Realized Capitalization Hits ATH Amid the Fear and Greed Index, Jumping to Neutral Grounds

Bitcoin (BTC) has been in a ranging market ever since the leading cryptocurrency experienced a significant pullback, which prompted a $10K daily loss from the $52,000 level.

Nevertheless, the realized capitalization has been on an upward trajectory after hitting a record high. On-chain metrics provider Glassnode explained:

“Bitcoin realized cap just reached an ATH of $398,671,308,690.99.”

Realized market capitalization is a metric calculated by valuing each supply unit at the exact price it last moved on-chain or at the last time it was transacted.

As a result, it does not calculate coins that remain unmoved because cryptocurrencies can be lost, unreachable, or unclaimed. This contrasts with the standard market capitalization that values every supply unit evenly at the current market price.

BTC fear & greed index moves to the neutral level

According to market analyst Lark Davis, the Bitcoin fear and greed index jumped to a neutral level of 54 from a fear zone of 20.

Davis had previously noted that FUD (fear, uncertainty & doubt) had engulfed the BTC market, lowering the fear and greed index. He, however, acknowledged that these were opportunity times, given that some investors had adopted the strategy of buying the dip.

Meanwhile, Raoul Paul, the founder and CEO of Real Vision, believes that Bitcoin could witness an upside move based on the consolidation witnessed on the long-term log chart. He stated:

“The Bitcoin long-term log chart looks pretty luscious. Who knows if the wedge breaks on the first attempt, but a consolidation pattern of this magnitude usually leads to a very, very powerful upside move.”

Macro behavioural trends being witnessed in the Bitcoin market

On-chain analyst Will Clemente believes the different approaches adopted by short-term BTC holders and their long-term counterparts are boiling down to a game between speculators and investors. He acknowledged:

“The dynamics between the short-term holder and long-term holder supply illustrate the underlying macro behavioral trends between speculators and investors. – LTHs buy weakness, sell into strength to speculators. – STHs buy strength, sell into weakness, or age into LTHs.”

On the other hand, market insight provider Dilution-proof stipulated that Bitcoin’s on-chain trends looked favourable despite the leading cryptocurrency closing with a 7% loss in September.

Bitcoin’s circulation recently hit a 2-month high, which suggested price could follow suit.

Ethereum Miner Balances Hit a 50-Month High as ETH Leads in NFT Sales

Ethereum (ETH) miners have seen their holdings go through the roof to the tune of $1.85 billion.

Crypto analytic firm Santiment explained:

“Ethereum miner balances have continued to skyrocket. 532.75K ETH is the largest balance held by miners since July 13, 2016. The value of these coins is $1.85B, easily an AllTimeHigh.”

A price surge coupled with increased usage has been instrumental in pushing ETH miner balances to a record high. For instance, Damian Sowers, the founder of Level Frames, recently stated that Ethereum usage was fifty-four times that of Bitcoin as the neck-to-neck battle between the two leading cryptocurrencies continues.

Ethereum enjoys significant NFT dominance

According to Mason Nystrom, a researcher at Messari Crypto:

“The NFT market officially surpassed $10 billion in secondary sales combined across a variety of categories including gaming, PFPs (profile pics), sports, and collectables. Ethereum leads all blockchains and Layer-2s with over $6 billion in secondary NFT sales.”

Therefore, Ethereum has surfaced as the backbone of the NFT sector, which is taking the crypto space by storm.

The non-fungible token (NFT) industry has experienced an uptick in activities, given that the tokens offered are different from the typical ones because of fungibility.

NFTs are blockchain-based ownership digital assets, and their value is pegged on their uniqueness, given that the tokens are non-divisible and have to be bought in their entirety.

As a result, these traits create intrinsic value for NFTs because of their limited supply.

Different industries continue to embrace NFTs, given that they are seen as significant stepping stones towards a virtual-reality world. For instance, leading Italian luxury fashion house Dolce & Gabbana recently sold a nine-piece collection of fashion NFTs dubbed Collezione Genesi for a whopping $6 million.

Ethereum realized capitalization scales the heights

According to market insight provider Glassnode:

“Ethereum realized capitalization just reached an ATH of $171,803,527,031.77.”

Realized market capitalization is a metric calculated by valuing each supply unit at the exact price it last moved on-chain or at the last time it was transacted.

As a result, it does not calculate coins that remain unmoved because cryptocurrencies can be lost, unreachable, or unclaimed. This contrasts with the standard market capitalization that values every supply unit evenly at the current market price.

Ethereum Layer 2 Continues to Gain Steam as ETH Realized Capitalization Soars

As Ethereum (ETH) is one of the sought-after networks in the crypto space, scalability becomes an issue that ought to be amicably addressed for optimal results.

Ethereum layer 2 (L2) aims to address this challenge, given that it’s a distinct network running on top of Ethereum Mainnet (layer 1). Therefore, more users and investments continue trickling into layer 2. Market analyst Lark Davis confirmed:

“Ethereum is scaling here and now. Layer twos are gaining users and total value locked every day! Arbitrum is currently the 9th biggest TVL in the market ahead of Elrond.”

Recently, StarkWare, a blockchain startup specializing in ETH layer two development, raised funds worth $50 million, bringing its value to $2 billion.

Scalability is a challenge to typical blockchain designs because every node in the network has to process each transaction. This limits the transaction processing capacity of the entire system.

Ethereum layer 2 allows transactions to go through without every node processing the whole transaction.

L2 also seeks to address the high gas fees experienced on the mainnet, as alluded by crypto investor Evan Van Ness.

“Rollup transactions on Ethereum are cheap. But they will get much cheaper in the next few months via 3 methods: 1. better data compression 2. EIP4488 (or 4490) making it cheaper to put data on mainnet 3. more rollup transactions means splitting the mainnet fees with more people.”

Meanwhile, Ethereum’s realized capitalization continues to increase after reaching an all-time high (ATH) of $217.47 billion.

Realized market capitalization is a metric calculated by valuing each supply unit at the exact price it last moved on-chain or at the last time it was transacted. Therefore, it does not calculate coins that remain unmoved.