BTC: NVM Ratio

Shown as its 2019–2022 sample; the latest readings and full history are included with Plus.

Network value to Metcalfe ratio (NVM): the natural log of the market value divided by the natural log of the squared 7-day average of daily active addresses.

Why use it. Metcalfe's law values a network by the square of its users. Comparing market value with that square, on log scales, shows when the price has run ahead of network use or lagged it. How to read it. Higher readings mean market value is rich for the activity behind it, lower readings cheap. The ratio drifts slowly over the years; compare a reading with its own recent range. It describes valuation, not timing.

Calculation. NVM = ln(market value) ÷ ln((7-day mean of active addresses)²). Active addresses are counted from our own Bitcoin node (addresses that sent or received in the day); market value is the issued supply at the daily close. Calculated from our own validated Bitcoin Core node history at the accepted daily closes.