Indicator Overview

The indicator is the Realised Value to Transaction (RVT) Ratio. It is calculated as the Realised Cap (Realised Value) divided by the daily USD value of on-chain transaction volume. The RVT Ratio is similar to the NVT Ratio, but it uses Realized Cap (the aggregate price at which all coins last moved) instead of Market Cap. This makes RVT a more conservative valuation metric that filters out speculative Market Cap noise, focusing on the ratio between the coin's fundamental cost basis (Realised Cap) and its actual utility (Transaction Volume).

How To Use

The RVT Ratio is used to identify sustainable price levels based on fundamental network usage.

High RVT Ratio readings occur when the Realised Cap is low relative to the transaction volume. This suggests the network's cost basis is low relative to its daily utility, typically indicating undervaluation and acting as a signal for potential market bottoms or accumulation opportunities.

Low RVT Ratio readings occur when the Realised Cap is high relative to on-chain transaction volume. This suggests the network's cost basis is high relative to its daily utility, signaling valuation overextension and potential risk of correction.