Bitcoin network value at all-time high based on average price paid per BTC

Market capitalization gives a skewed value for the Bitcoin network. Borrowed from the realm of traditional equities, market capitalization is the price of all coins in circulation multiplied by the last price the coin traded at.

Market capitalization: coin supply * last spot price

Market capitalization has several deficiencies. Large quantities of coins that are lost, unrecoverable, worth less than the associated transaction fees, or merely held by unshakeable holders, still impact a crypto-asset’s capitalization.

One notable example is addresses associated with Satoshi Nakamoto, the anonymous creator of Bitcoin. Satoshi Nakamoto is said to hold 980,000 BTC based on analysis of the early Bitcoin blockchain—5.5 percent of the current supply and 4.7 percent of the maximum supply. These coins are largely considered lost but are still factored into market capitalization.

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