The Network Value to Transactions (NVT) ratio measures the dollar value of cryptoasset transaction activity relative to network value. This is a simple way to compare how the market prices one unit of on-chain transactions across different networks.
Generally speaking, a “low” market to transaction value denotes an asset which is more cheaply valued per unit of on-chain transaction volume.
Network value consists of the total market value of all tokens in circulation. The transaction element is an estimate of the value of on-chain transaction activity drawn from block explorers and blockchains.
Adjusted volumes subtract out non-economic volume for all UTXO (Bitcoin-style) blockchains and Ethereum; more coming soon.
Daily NVT chart
Due to change outputs which inflate estimations of on-chain transactions, the figures themselves are imprecise. However, this skewed estimation is consistent both on a time-series and cross-sectional basis (across different cryptoassets), so relative change and positioning of NVT ratios between cryptoassets are meaningful. For more on this caveat, see this post and our FAQ.
We owe thanks to Willy Woo and Chris Burniske for devising and popularizing the metric, respectively. It was originally called MTV (market cap to transaction value) but market cap is a misleading name in this context.
Data sources and methodology
Daily on-chain transaction volume is calculated as the sum of all transaction outputs belonging to the blocks mined on the given day. “Change” outputs are not included.
Zcash figures for on-chain volume and transaction count reflect data collected for transparent transactions only. In the last month, 10.5% (11/18/17) of ZEC transactions were shielded, and these are excluded from the analysis due to their private nature. Thus transaction volume figures in reality are higher than the estimate presented here, and NVT and exchange to transaction value lower. Data on shielded and transparent transactions can be found here and here.
NVT is impossible to calculate for Monero due to RingCT technology which hides transaction volumes.