NVT signal and RVT ratio
What it is
Two related ratios that compare the network's valuation with the value transferred on-chain. Similar to a price-to-earnings (P/E) ratio for stocks, they show how much value is assigned to each dollar of measured on-chain transfer activity. NVT Signal (Network Value to Transactions) uses market capitalization, which follows the current price. RVT Ratio (Realized Value to Transactions) uses realized capitalization, which values each coin at the price when it last moved, so it is less sensitive to short-term price swings and gives a more stable baseline.
How it is calculated
NVT Signal = Market Cap / SMA90(Adjusted Transfer Value)
RVT Ratio = Realized Cap / SMA90(Adjusted Transfer Value)
Market Cap (market capitalization) — the current price of one coin multiplied by the number of coins in circulation.
Realized Cap (realized capitalization) — each coin is valued at the price when it last moved on the blockchain, and these values are summed. This approximates the aggregate cost basis of all coins in the network.
Adjusted Transfer Value — the daily total value of qualifying transfers on the network, in US dollars. Technical noise—such as change returned to the sender and transfers between a user's own addresses—is excluded to reflect economically meaningful activity.
SMA90 — the 90-day simple moving average, which smooths out short-term spikes in transfer volume.
How to read it
High values — the network's valuation is high relative to on-chain transfer activity. Valuation may be running ahead of network usage, indicating a higher risk of correction. Historically, high values have been associated with overvaluation and market tops.
Low values — the network is seeing strong transfer activity relative to its valuation, which may indicate undervaluation. Historically, low values have been associated with accumulation zones.
NVT Signal vs RVT Ratio — NVT Signal reacts quickly to price changes, while RVT Ratio changes more slowly and is better suited to long-term cycle analysis. If NVT Signal rises sharply while RVT Ratio stays flat, the move is driven mainly by a short-term price change rather than by a shift in the network's fundamentals.
The direction of change and comparison with the asset's own history matter more than the absolute level.
What it is used for
Assessing whether the network's valuation is supported by on-chain usage or driven mainly by speculation. NVT Signal is useful for tracking current valuation, while RVT Ratio helps identify long-term market cycles and distinguish sustainable trends from temporary price spikes.
Limitations
Off-chain activity—such as trading on centralized exchanges and transactions on layer-2 networks—is not captured in main-chain transfer volume. A shift toward off-chain settlement can cause both ratios to remain structurally higher over time. Lost coins stay in realized capitalization at their last transfer prices, which affects RVT Ratio. Both ratios are indicators of relative valuation, not price forecasts.