The RVT Ratio is calculated as the ratio between the Realised Cap (USD) and the 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 realised cost basis. This version makes use of entity-adjusted on-chain volume.

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

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

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

Coined By

Checkmate and David Puell

References

The Bitcoin RVT Ratio, A High Conviction Macro Indicator, 22-Sept-2019