Definition. Invested Capital Price is the average cost basis of a dollar invested in the network, whereas Realized Price is the average cost basis of a coin. Invested Capital Price is never below Realized Price and equals it only when all coins share the same cost basis, so the gap between the two measures how dispersed the cost basis is. The related metric Invested Capital Quantiles shows the price distribution in more detail.

Technical. Computed as the sum of holdings × acquisition price², divided by the sum of holdings × acquisition price (Realized Cap). For UTXO-based chains like BTC, the acquisition price is the price at which each coin last moved on-chain. For account-based chains like ETH, each address's balance is valued at the address's average acquisition price.

Interpretation. Spot above Invested Capital Price means the dollar-weighted average cost basis sits below the current price. Spot below it means the average invested dollar was deployed above the current price. Because each coin is weighted by the capital it represents, coins acquired at very low prices, including long-lost coins, contribute little to the level. New capital at high prices raises the level immediately, so it reacts faster than coin-weighted cost-basis models near cycle highs.