NVT Ratio (Network Value / Transactions)
Source: Glassnode, Coin Metrics
Market vs Realized Value
Network Value Basis
Network Value vs Activity
Profitability Indicator
Network Value vs Users
Market Value compared to Realized Value (Network Cost Basis)
Compares Bitcoin’s market cap to the aggregate cost basis of all coins moved on-chain.
Formula: MVRV = Market Cap / Realized Cap
Source: Glassnode
Values each coin at the price it was last moved on-chain, representing total network cost basis.
Formula: Realized Cap = Σ (Coin Amount × Price at Last Moved)
Source: Glassnode
Compares network value to on-chain transaction volume to assess valuation relative to activity.
Formula: NVT = Network Value / Daily Transaction Volume (USD)
Source: Glassnode, Coin Metrics
Measures profitability of spent outputs. Above 1 indicates profit realization; below 1 indicates loss.
Formula: SOPR = Σ (Spent Output Value / Creation Value)
Source: Glassnode
Network value tends to grow with the square of active users through the network effect.
Concept: Value ∝ (Active Users)²
Source: Glassnode
Models simplify historical patterns and market context, not future price targets.
No single model is infallible. Use a combination for broader perspective.
Best viewed over longer timeframes. Avoid overreacting to short-term noise.
Models inform risk awareness. They do not replace your own research and judgment.
All models are derived from transparent, on-chain data and established economic frameworks.
These models have limitations and should not be used in isolation.
Track fiat debasement and inflation impact.
Compare Bitcoin against major asset classes.
Run your own scenarios and valuations.
Understand frameworks, limitations, and risk.
