Understanding NVT Ratio
The Network Value to Transactions ratio measures whether a crypto network is overvalued relative to its on-chain transaction volume.
What is the NVT Ratio?
NVT Ratio divides a cryptocurrency's market capitalization by its daily on-chain transaction volume. Think of it as a crypto P/E ratio — it measures how much investors are paying per dollar of actual network usage.
How Does It Work?
A low NVT means the network processes a lot of value relative to its market cap — potentially undervalued. A high NVT suggests speculation is outpacing actual usage — potentially overvalued.
How We Use It
NVT carries 4% of the Value Score. We use MCap/Volume as a proxy, since true on-chain transaction data requires premium sources. It shares that ratio with Network Activity and Volume/MCap, so the three together are capped at 12% — one signal should not count three times.
NVT < 20
High Usage / Undervalued
NVT > 100
Low Usage / Overvalued
Current Top 5 Coins by NVT Proxy (MCap / Volume)
How our algorithm currently scores the leading crypto assets on the "NVT Proxy (MCap / Volume)" component. Higher = stronger undervaluation signal on this single dimension.
Worked Example
Tether (USDT) leads with a NVT Proxy (MCap / Volume) value of 90/100. On this single dimension, Tether currently shows a clear undervaluation signal. Click Tether above to see the full score breakdown across all 10 metrics.