Description
Definition. Market Value to Realized Value (MVRV) ratio segmented by holding-period age cohort. MVRV compares market capitalization (current market value) to realized capitalization (the value of coins when they last moved). The by-age decomposition computes a separate ratio per cohort, exposing the aggregate unrealized profit or loss carried by short-term versus long-term holders.
Technical. Breakdowns use an address-based approach, analyzing transactions and holdings at the wallet-address level to facilitate comparability across digital assets and to ensure consistent analysis across various blockchain architectures. This contrasts with the alternative UTXO-based approach for chains like Bitcoin, where unspent transaction outputs are analyzed to categorize asset properties. Metrics for UTXO-based assets may show slight deviations if compared across these different computational methods.
Interpretation. A cohort reading above 1 places that age band in aggregate unrealized profit, a reading below 1 places it in aggregate unrealized loss. Surfaces how unrealized valuation differs between long-held and recently-moved coins. Answers questions of the form: are older coins being held at a higher relative valuation than coins that recently changed hands?