NVT Ratio

Network Value to Transactions: 'crypto P/E'.

NVT = Market Cap / Daily On-chain Tx Volume. Network valuation vs activity. Low = cheap. High = speculation. BTC zones: <30 undervalued, 30-100 normal, >100 overheated. NVT Signal (90-day MA) smooths.

In plain words

Ratio of total network value (cap) to daily on-chain transaction value. The crypto equivalent of a P/E ratio from stocks. Low NVT = network cheaply valued vs real usage. High = valuation detached from usage, speculation-driven.

Example

BTC 2017 peak: NVT 95 (overheated). BTC 2018 bottom: NVT 27 (bargain). BTC Mar 2024 ATH 73k: NVT 65 (normal upper). NVT comparable only over time per crypto.

Also known as: NVT, NVT ratio

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