The Network Value to Transactions (NVT) Ratio: A Breakthrough for Cryptocurrency Valuation

4 min read

“Price is what you pay, value is what you get.” Warren Buffett. Although we are currently in the midst of a major market correction, the last few years have seen a dramatic surge in the price and market capitalisation of cryptocurrencies. Led by Bitcoin, markets for these revolutionary digital assets have experienced unprecedented growth, which in turn has generated often frenzied publicity for the crypto complex. But rather than the mere headline figures of price and market cap, investors are invariably more concerned with valuation. Are current prices reflective of what Bitcoin et al. are actually worth? Is Bitcoin and/or…...

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Dr Justin Chan Dr Chan founded (DDI) and is the CEO for JCube Capital Partners. Specialized in strategy development, alternative data analytics and behavioral finance, Dr Chan also has extensive experience in investment management and financial services industries. Prior to forming JCube and DDI, Dr Chan served in the capacity of strategy development in multiple hedge funds, fintech companies, and also served as a senior quantitative strategist at GMO. A published author at professional journals in finance, Dr. Chan holds a Ph.D. degree in finance from UCLA.