Well, anyone who thought that bearish sentiment would kill Bitcoin was wrong, they were very wrong. Furthermore, one statistic suggests that Bitcoin may be more valuable today than ever to the ecosystem, including its ATH days.
Bitcoin's total “realized” market capitalization today surpassed the numbers recorded in April 2021, when its price peaked.
The statistic was shared a few hours ago by blockchain data provider Glassnode via a tweet as BTC posted a realized cap of $ 378,768,190,450,72.
Why is the realized limit important to Bitcoin?
The realized limit is a way to have a slightly more "real" or honest measure of the total value moved with Bitcoin. Market capitalization is a very popular statistic among cryptocurrency enthusiasts obtained by multiplying the current price of a Bitcoin by the number of Bitcoins currently in circulation.
On the other hand, the realized limit tries to sum the value that each Bitcoin token had when it was last moved. So if some coins were last moved during the April ATH, they will be multiplied by 60K, while some that were last moved at the 2017 peak will be multiplied by $ 21K.
This provides a better approximation of the value moving on the network. For example, the coins of Satoshi, or that have been lost, do not have the same weight as those used this week to make some transactions.
The fact that Bitcoin currently has a higher realized capitalization than that recorded during the April ATH is a sign of optimism as it indicates an increase in network activity, possibly indicating greater adoption or even greater trust in BTC as a means of exchange.
Additionally, Bitcoin's market cap has increased as the token price rises and recovers from a slump that led to it trading below $ 30k; however, it is still well below its all-time high of $ 1,1 trillion. Earlier this week, the total cryptocurrency market capitalization hit $ 2 trillion.
BTC gets better and better
There are other circumstances that attest to Bitcoin's maturity as an asset.
Recently, Core developers rolled out the Taproot update to increase network security and efficiency. In very general terms, Taproot allows you to group multiple signatures into a kind of single master key, making transactions more private and taking up less space on the network, and therefore requiring fewer fees.
This update will be rolled out later this year.
Separately, the latest mining difficulty adjustment also means good news. Greater mining difficulty shows that there is greater security on the network. This also means that the negative episode of the Chinese crackdown is ending and Bitcoin miners are looking for ways to move forward with their business.
