Ethereum's Network-to-Value Ratio Slides to 3-Month Low as ETH Rallies 20%

The widely tracked ratio measures ether's market capitalization in relation to the value of on-chain transactions processed on the Ethereum network.

AccessTimeIconMar 15, 2023 at 7:07 a.m. UTC
Updated Mar 15, 2023 at 3:33 p.m. UTC

An on-chain indicator suggests leading smart-contract blockchain Ethereum's native cryptocurrency, ether (ETH), may be trading at compelling valuations.

  • The seven-day average of Ethereum's network-to-value (NVT) ratio, which measures the cryptocurrency's market capitalization (numerator) in relation to the value of on-chain transactions processed on the underlying blockchain (denominator), slipped to 59.3.
  • That's the lowest since Nov. 19, according to data tracked by blockchain analytics firm Glassnode.
  • A rising ratio, implying a slower growth rate of onchain transactions relative to the cryptocurrency's price, suggests the network is overvalued. A declining ratio indicates otherwise.
  • The metric is analogous to the price/earnings (P/E) ratio widely used in stock markets to gauge whether a share price is cheap or expensive.
  • Ether has gained over 20% since late Friday, with the price reaching a six-month high of $1,784 at one point, CoinDesk data shows.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.