The True Market Mean Price, or the Active-Investor Price, is a representative cost basis model for all coins acquired on secondary markets. We argue that this on-chain cost basis is one of the most accurate models available for on-chain analysts seeking the aggregate average on-chain acquisition price by investors, and thus a likely reference point for mean reversion models.

The True Market Mean Price is calculated as the ratio between the Investor Cap and Active Supply.

Coined By

This metric was developed within the Cointime Economics framework for Bitcoin. This project was a joint venture between Glassnode and ARK Invest, with full details available in two formats: an overview primer (Version I published via ARK) and a comprehensive guide for specialists (Version II published via Glassnode).