RVT

Tech spec

Brief Description: Ratio of Bitcoin's cointime realized value to the 90-day average of coinblock value destroyed.

RVT, or RVT Ratio, measures the cointime realized value of Bitcoin’s Active Supply relative to the 90-day moving average of coinblock value destroyed (CBD). This metric refines the traditional NVT Ratio by incorporating cointime, providing a deeper analysis of Bitcoin’s valuation relative to its transactional activity. It is based on the Cointime Economic framework.

Interpretation RVT is indicative of the Bitcoin network's valuation in comparison to its transactional activity. High values of the ratio suggest that the network's valuation is large compared to the amount of coinblock value destruction occurring, which might indicate an overvalued state. Conversely, low values signify a smaller network valuation relative to the degree of coinblock value destruction, potentially indicating undervalued conditions.

Advanced Explanation The calculation of RVT involves dividing the cointime realized value of Bitcoin's Active Supply by the 90-day moving average of the coinblock value destroyed. This ratio is an adaptation of the traditional Network-Value-to-Transactions (NVT) Ratio, with the added dimension of cointime, thereby offering a deeper insight into the network's valuation relative to its transactional volume.

RVT = (Cointime Price * Active Supply) / SMA_90_day[Price * CBD]

Cointime Economics is a new framework for Bitcoin onchain analysis published by James Check and David Puell. References: https://ark-invest.com/white-papers/cointime-economics/ and https://insights.glassnode.com/introducing-cointime-economics/