Active Realized Price is at iteration on the classic Realized Price, seeking a more representative estimate of the average cost basis for the Bitcoin market. Active Realized Price accounts only for coins which are economically active and automatically discounts the coin supply as inactivity increases.

Active Realized Price may be considered as the aggregate BTC ‘acquisition price’ (by hash power or in secondary markets), divided by the economically active supply (Active Supply). It is a self correcting model that will automatically adjust in the event that long-dormant coins are spent and re-enter circulation.

Active MVRV can be derived from this as a measure of price deviation from the Active Realized Price. This provides an oscillator gauge of the unrealized profit/loss held within the economically active coin 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).