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NVT Shows Legitimate Bitcoin (BTC) Growth : On-Chain Analysis

beincrypto.com 21 December 2021 22:00, UTC
Reading time: ~2 m

In this article, BeInCrypto takes a look at Bitcoin (BTC) on-chain indicators, focusing especially on the Network Value to Transaction (NVT) ratio. 

What is NVT?

The NVT (Network Value to Transaction) is an on-chain indicator which shows the relationship between transaction volume and market capitalization. It is simply the ratio between the market value and the daily transaction volume.

A very high value is considered bearish, since it means that the increase in market value is not supported by an increase in transaction volume.

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