However, the public chain itself does not create “per-coin” profit. NVT is the ratio of network value and transaction amount on the chain, reflecting the extent to which people use this public chain (frequency of use and amount of transfer) relative to the current price. , Instead of stock profits, reflect the vitality and intrinsic value of the public chain through the amount of transactions on the chain.
The public chain is different from the enterprise. Most of its economic behaviors occur on the chain. Bitcoin’s on-chain behavior is just a transfer. The public chain supporting smart contracts includes more smart contract calling behaviors. If the behaviors on different chains are abstracted as the activities of this public chain economy, then the research on the chain data is similar to the investigation of enterprise fundamentals. NVT is one of the better understood indicators on the blockchain.
Imagine that there are two public chains that carry the entire life cycle of supply chain financial bills. Of course, public chains that carry greater bill value have greater value. Similarly, the PE scope of enterprises in different industries is different, and the types of economic activities carried by public chains are different, so the scope of NVT is also different. Maybe you have doubts about this, can the transaction value on the crypto Crypto currency chain reflect its intrinsic value?
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From an economic perspective, NVT has its guiding significance. -
NVT is relatively stable, and it reverts to the mean in the long run. -
Relative to market capitalization, NVT enables direct comparison of cryptocurrencies in the same field.
The culmination of the bull market in 2017 and NVT Signal (At the end of 2017, NVT exceeded 150 again, and the price of BTC reached $20,000, which is another excellent time to sell.)
At the same time, the indicator also shows consistency at the bottom of the predicted bear market (correspondingly, NVT has been lower than 60 times in January, April, July, and October 2017 several times to prove the stage price low).
In Sharpdata, you can view NVT Signal data in real time, and only need a simple setting to remind the change of the indicator 7*24.
If NVT Signal has relatively certain guiding significance in the medium and long term, how does it perform in the short and medium term? Let’s take a look at the valuation trends reflected in the data for the past 6 months. In the past 6 months, BTC NVT Sginal has experienced two rises and one decline. When NVT Signal is lower than 60, the BTC price is at this 6-month low, which is the 3/12 market this year. Combined with NVT Signal, we can avoid excessive panic.
However, after the BTC price stood at US$10,000 in mid-February this year, NVT Signal greater than 100 indicates that the BTC price is overvalued. Ideally, according to NVT Signal, it can be sold for more than 10,000 US dollars in mid-February, and successfully bargained at a price of less than 6,000 after one month.
It should be noted that similar to the survey of corporate fundamentals, NVT Signal reflects one of the “long-term” value indicators of the public chain. The better interpretation of the data in the past few years does not necessarily prove that the indicator will still fit in the future, understand the meaning of NVT Signal, and use it as a start to study the economic activities on the public chain, let us explore the blockchain world together. secret.