Bitcoin NVT Ratio

(Ratio has been smoothed using a forward and backward facing weekly average)

Notes about NVT Ratio

NVT Ratio (Network Value to Transactions Ratio is similar to the PE Ratio used for stocks.

When Bitcoin's NVT is high, it indicates that its network valuation is outstripping the value being transmitted on its payment network, this can happen when the network is in high growth and investors are valuing it as a high return investment, or alternatively when the price is in an unsustainable bubble.

Bitcoin's NVT is calculated by Network Value (Market Cap) divided by the USD volume transmitted through the blockchain. The USD value transmitted is an estimation by

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