Realized Cap - UTXO Age Bands

Realized Cap - UTXO Age Bands shows the distribution of realized cap of a specified age band

Definition

Realized Cap - UTXO Age Bands shows the distribution of realized cap of a specified age band. Each colored band represents the Realized Cap of UTXOs in existence, that were last moved within the denoted time period in USD value. Realized Cap is calculated by valuing each UTXO by the price when it was last moved.

\text{Realized Cap - UTXO Age Bands (USD)} ={\sum_{u \in utxos} \text{value}_u * \mathbb{I}(a_i \leq \text{lifespan}_u < b_i) * \text{Price}_{\text{u, at created}}}

[a_i, bi) \in [[0, 1d), [1d, 1w), [1w, 1m), [1m, 3m), [3m, 6m), [6m, 12m), [12m, 18m), [18m, 24m)\\ [2y, 3y), [3y, 5y), [5y, 7y), [7y, 10y), [10y, \inf)

Modified Metrics

Interpretation

This indicator summarizes the capitalization held by long-term and short-term holders. As price rises/falls, it is advised to watch out for shifting distribution in the UTXO Age Bands to further gain insights on the market through analyzing its participants.

Different from UTXO Age Bands indicating UTXO native values or USD value which applies the current same price standard to each band, Realized Cap - UTXO Age Bands (USD) applies each UTXO by the price when it was last moved to make the indicator some advantages overseeing the market.

1) Lost Old Coins' influence on the metric is minimized.

For example, UTXOs that locates at the Age Band of 10 years to infinity could be assumed lost since it hasn't moved for a long time. UTXOs like these could be represented as a substantial amount in the normal UTXO Age Bands but it's minimized at the Realized Cap- UTXO Age Bands because of the low price that bitcoin was at the time.

Applying Realized price naturally accounts for long-held but lost coins.

2) Represents Stored Value as it counts for each economical circumstance at the time along with age band.

Bitcoin's price has been x10000 since its creation and equalling the same amount of purchase at the cost of a dollar with standards today might be misleading in evaluating stored value. Realized Cap - UTXO Age Bands accounts for the economic standard of the according to Band Age.

By value itself

High value(Native Value) & Dominance(%) in certain UTXO Age Band - Age Band's type of investor has more representative

For example, if the UTXO Age Band of 3 years to 5 years have the greatest Realized Cap - UTXO Age Bands,

1) It is possible to interpret it as investors that held 3 to 5 years have more potential of influencing the market both in terms of age and stored value.

2) The average price range bought at the time could indicate an important price level in the market.

Low value(Native Value) & Dominance(%) in certain UTXO Age Band

For example, if the UTXO Age Band of 3 years to 5 years has the least UTXO Age Band Value,

1) It is possible to interpret it as investors that held 3 to 5 years have less potential of influencing the market than other UTXO Age Band in terms of economical stored value.

2) The average price range bought at the time could indicate an important price level but could fall behind compared to other UTXO Age Bands.

By examining trend

Longer UTXO Aged Bands Gaining Dominance or Larger in Depth - More UTXOs are being held for the Long term = More HOLDing

As comparatively newer coins are being held or so to speak HODLed without any movement in the network, it moves on to the next UTXO Age Bands implying that more coins are being held in the long term and more values are being stored according to Age Band.

Younger UTXO Aged Bands Gaining Dominance or Larger in Depth - Old Coins Being Renewed to Younger Coins = Old Coins Being Circulated

As older coins are being transferred in the network, they are destroyed and become new UTXO making the younger UTXO Age Bands increase in value which results in young UTXO Age Bands growing in size.

Link to Our Data

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Last updated 1 year ago