The ratio of the network value (or market capitalization, current supply) divided by the adjusted transfer value. Also referred to as NVT.
| ID | Category | Subcategory | Type | Unit | Interval |
|---|---|---|---|---|---|
| NVTAdj | Valuation | Valuation | Ratio | Dimensionless | 1 day |
This metric uses the native units network value and adjusted transaction volume. It is therefore available at the asset’s genesis, unlike if it was using USD values.
It can be thought off as a rough P/B (price to book) ratio proxy for crypto assets.
Conceptualized by Willy Woo
Released in the 1.0 release of NDP
NVT has been much discussed; in short, it compares market capitalization to on-chain transactional usage. Blockchains with high usage relative to market cap have a higher NVT. In this sense it can be understood as the opposite of velocity. Due to structural dissimilarities in blockchain usage modes, NVTs among all assets are not directly comparable. Our formulation employs adjusted transaction volume, as we understand this to be a purer measure of the actual usage of the chain.