Definition. This chart shows the 🔴 Cointime NVT Ratio and 🟢 Cointime RVT Ratio — cointime-derived network-valuation-to-throughput ratios, analogous to the traditional NVT and RVT ratios widely popular in the on-chain analysis field. The measurement of 'transactional volume' in a Cointime Economics framework is best captured by the coinblocks destroyed metric, representing the spent cointime volume at each blockheight.

Technical. Both ratios divide a valuation of the Active Supply by the 90-day moving average of coinblock value destroyed:

• Cointime NVT = (Price x Active Supply) / 90DMA(Price x Coinblocks Destroyed) (🔴) — the market value of the Active Supply (Active Cap) over cointime throughput
• Cointime RVT = (Cointime Price x Active Supply) / 90DMA(Price x Coinblocks Destroyed) (🟢) — the cointime realized value of the Active Supply over cointime throughput

where Active Supply = Liveliness x Circulating Supply and the Cointime Price is the Blummer Price.

Interpretation. Cointime NVT and RVT Ratios have both shown a remarkable degree of stability over time, and can be considered within the following framework: high values indicate that the valuation of the network is large relative to the degree of coinblock value destruction taking place — valuation running ahead of on-chain economic throughput — while low values indicate that the valuation is small relative to the value destruction taking place, i.e. heavy realized activity supporting the current valuation. Because both numerator and throughput are anchored to the economically active supply region, these variants avoid the distortion that lost and dormant coins introduce into the classic NVT and RVT constructions.

Notes. This chart was developed within the Cointime Economics framework for Bitcoin, a joint venture between Glassnode and ARK Invest. Full details are available in two formats: an overview primer (Version I, published via ARK) and a comprehensive guide for specialists (Version II, published via Glassnode). The classic counterpart is the NVT Ratio. Built from Coinblocks Destroyed and Liveliness; the pricing model used is the Cointime Price (Blummer Price).