The MVRV ratio was created by Murad Mahmudov & David Puell hot on the heals of the invention of Realised Cap by the Coinmetrics team of Nic Carter and Antoine Le Calvez. Realised Cap is an alternative approach to Market Cap as a measure of network valuation. Rather than using the last traded price and multiplying by the coins in circulation as seen in Market Cap, Realised Cap works out the total value paid for each coin at the price they last moved on the blockchain. MVRV is simply the ratio comparing the two, i.e. MVRV = Market Cap / Realised Cap. It’s useful for getting a sense of whenthe exchange traded price is below “fair value” and is also quite useful for spotting market tops.
MVRV Ratio is calculated by dividing the Network Value (market cap) by the Realised Cap.
Data for Realised Cap via Coinmetrics.com.