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.


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

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