Active Cap (Cointime)
Cointime-weighted capitalization counting only economically active supply. Filters out dormant coins for a cleaner valuation reading.
What is it?
Active Cap is the cornerstone of the Cointime Economics framework developed by ARK Invest and David Puell. Unlike classic Realized Cap which treats all BTC equally, Active Cap weights each UTXO by its 'freshness' measured in coinblocks destroyed. Recently moved coins contribute fully to Active Cap, while coins dormant for years (including lost coins) see their contribution progressively reduced. The result is a capitalisation reflecting Bitcoin's 'true active economy' rather than its complete stock.
How to read
Active Cap is always below Realized Cap as it depreciates dormant coins. The difference between the two measures 'frozen capitalisation' - value locked in coins that are probably lost or indefinitely held. When the Active Cap / Realized Cap ratio rises, the network is activating; when it falls, it is 'vaulting' (coins are becoming dormant).
Key zones
The Market Cap / Active Cap ratio (= AVIV Ratio, #47) functions as an adjusted MVRV that is mechanically higher than classic MVRV (the Active Cap denominator being smaller than Realized Cap). Overheating zones are reached at higher multiples but the trend reading is identical. Price crossovers with Active Cap / circulating supply (i.e., True Market Mean Price, #46) are the key readings.
What to observe
Active Cap's rate of change is the most informative indicator. Acceleration (Active Cap rising faster) indicates an influx of fresh coins into the active economy - a sign of vitality. Deceleration or contraction indicates the network is 'freezing,' holders choosing dormancy over activity.
Historical context
The Cointime framework was published in 2023 by ARK Invest, offering a complete overhaul of on-chain analysis that had historically been dominated by metrics treating all BTC equally. Active Cap showed better correlation with cycle reversals than classic Realized Cap, notably by reducing noise from Satoshi's lost coins.
Expert notes
Active Cap is the denominator of the AVIV Ratio (the 'Cointime MVRV'). For advanced analyses, decompose Active Cap by age cohort to identify which 'generations' of coins contribute most to the active economy. Coinblock weighting is a fundamental improvement but relies on the assumption that 'dormant' coins are truly inactive and not simply in sophisticated cold storage.
Common mistakes to avoid
Active Cap is not 'better' than Realized Cap - it is a different perspective. Realized Cap captures the TOTAL cost basis (including lost coins), useful for certain analyses. Active Cap captures the ACTIVE cost basis, useful for others. Both are complementary.
Programmatic access
REST API
curl -sS \
'https://api.trinityinsights.io/api/v1/onchain/active-cap/history?days=90' \
-H 'X-API-Key: $TRINITY_API_KEY'MCP server
{
"tool": "get_chart_value",
"metric_id": "active-cap",
"timeframe": "1y"
}Required tier: pro. See the pricing grid for the tier list and the MCP documentation for multi-client configuration.
Related metrics
Institutional disclaimer
Trinity Insights is an educational and analytical tool. The metric above does not constitute investment advice. Trinity Insights is not a Crypto-Asset Service Provider (CASP) registered under MiCA Regulation (EU) 2023/1114. See the full disclaimer.