CryptoOnchain
Ethereum Undervaluation: Ethereum NVT at All-Time Low
Ethereum’s 30-day moving average of NVT has hit an all-time low. This means that the ratio of market cap to daily network transaction volume is at an all-time low. Simply put, the actual volume of network activity is at an all-time high compared to the market valuation. Such situations usually have two potential messages: either the market is undervaluing the asset and a price rebound can be expected, or the increase in transaction volume is due to temporary factors such as DeFi, NFT events or large capital movements and does not necessarily lead to sustainable growth. History of data shows that after sharp NVT bottoms, in many cases the market has witnessed bullish phases, but there have also been cases where this signal has been accompanied by a further price decline. In any case, recording such a historic low in Ethereum's 30-day NVT is a point that cannot be ignored, as it represents the network's unprecedented mobility relative to its current value.