Bitcoin NVT Ratio & NVTS

NVT and NVTS Explained

The Network Value to Transactions (NVT) Ratio and its refined version, NVTS, are metrics used to assess Bitcoin's valuation relative to the value being transmitted on its network.

NVT Ratio

NVT Ratio is calculated by dividing the Network Value (market cap) by the USD volume transmitted through the blockchain daily. It's equivalent to dividing the Bitcoin token supply by the daily BTC value transmitted through the blockchain, making NVT technically an inverse of monetary velocity.

In standard charts, the NVT line is typically smoothed with a 14-day moving average to reduce noise.

NVTS (NVTS)

NVTS, an improvement on the original NVT, uses a 90-day moving average of the Daily Transaction Value to provide a more stable metric.

Model By

• Willy Woo: Introducing NVT Ratio (Bitcoin's PE Ratio) — Use it to detect bubbles - The original introduction of the NVT concept.
• Dimitry Kalichkin: Rethinking Network Value to Transactions (NVT) Ratio - In February 2018, Kalichkin published his work to improve NVT, making it a more responsive indicator. Woo then called this NVTS.