Definition. The RVT Ratio is calculated as the ratio between the Realized Cap (USD) and change-adjusted on-chain transaction value (USD), with a 28-day average applied. As such it represents the inverse of monetary velocity relative to the aggregate market realized cost basis. The ratio is shown in blue alongside Market Cap (grey) and Realized Cap (orange).

Technical. RVT Ratio = sma(Realized Cap / Change-Adjusted Transfer Volume (USD), 28). It is the Realized-Cap analogue of the NVT Ratio, substituting the more stable realized valuation for market valuation in the numerator.

Interpretation.

• High values and uptrends in RVT indicate that transaction volumes are declining relative to the realized cap, indicating a potential slow-down in network utilisation.

• Low values and downtrends in RVT indicate rising transaction volumes relative to the realized cap, indicating an increase in network utilisation.

• Stable sideways values of RVT indicate that transaction volumes are changing at an equivalent rate to the realized cap, indicating the current trend is likely sustainable and in equilibrium.

Because the Realized Cap moves far more slowly than Market Cap, the RVT is less reactive to price swings than NVT and better suited as a slow, high-conviction macro gauge of whether network usage justifies the capital stored in the asset.

Notes. Coined by Checkmate and David Puell — The Bitcoin RVT Ratio, A High Conviction Macro Indicator, 22-Sept-2019. Built from Realized Cap and Change-Adjusted Transfer Volume. Variants: RVT Ratio (Entity-Adjusted), Realized Value RVT and the Coinday NVT and RVT Ratio.