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Bitcoin
The NVT and RVT ratios compare Bitcoin's valuation to the economic value it settles on-chain — NVT uses market cap, RVT uses realized cap, both divided by transfer volume.
Why it matters
They assess whether Bitcoin's price is justified by the actual value flowing through its network, akin to a price-to-earnings ratio.
How it is built
NVT divides market cap by daily on-chain transfer volume; RVT divides realized cap by the same volume, typically smoothed to reduce noise.
What to watch
High NVT/RVT suggests price is rich relative to network usage (froth risk), while low readings suggest value is well supported by transactional throughput.