Network value to transactions (NVT)
From CryptoWiki
- 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. "
