Difference between revisions of "Network value to transactions (NVT)"
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wiki_crypto>Zeb.dyor (Created page with "* [https://coinmetrics.substack.com/p/coin-metrics-state-of-the-network-c37 From] CoinMetrics #40 (3-3-2020): "''[https://www.forbes.com/sites/wwoo/2017/09/29...") |
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Latest revision as of 08:56, 23 January 2022
- From CoinMetrics #40 (3-3-2020):
"Woo (2017) was the first to make the connection that fundamental ratios could be applied to cryptoassets by introducing the network value to transactions (NVT) ratio, calculated as a cryptoasset’s market capitalization divided by its daily value transacted over the network. The logic behind this approach is that daily transaction value represents the usage and utility of a cryptoasset. High values of the NVT ratio have reliably detected bubbles and low values have indicated attractive entry points in the past. "
