Definition. Market Value to Realized Value (MVRV) is the ratio between market cap and realized cap. Market Cap and Realized Cap are the underlying metrics.

Technical. For all assets except BTC, realized value uses an address-based approach, valuing each address's balance at its balance-weighted average acquisition price. For ETH tokens, burn addresses are excluded. Note that the market cap in this metric is computed as the sum of all on-chain balances times the price. It may be different from the metric Market Cap, which excludes locked and treasury funds and includes supply on other blockchains. The metric is related to Net Unrealized Profit/Loss (NUPL) via NUPL = 1 - 1 / MVRV. For ETH and ETH tokens, however, NUPL excludes smart contracts, so the formula does not hold there.

Interpretation. It gives an indication of when the traded price is below a "fair value".

Notes. Created by David Puell and Murad Mahmudov. For more information, see the post on the MVRV ratio.