Ethereum NVT Ratio Hits Record Low Indicating Possible Undervaluation
The latest on-chain data suggests that Ethereum may currently be undervalued, with a recent strong resurgence indicating a potential extended rally.
Key Points
- Ethereum's Network Value to Transactions (NVT) ratio has hit an all-time low, as reported by CryptoOnchain on the CryptoQuant platform.
- A low NVT ratio indicates high transaction volume compared to market capitalization, suggesting Ethereum is heavily used but potentially undervalued.
- The increase in transaction volume could be attributed to temporary factors like DeFi, NFT events, or large capital movements, which might not lead to sustainable price growth.
- Historically, an NVT bottom often precedes bullish phases, though there have been instances of continued price declines at very low NVT levels.
Ethereum is currently valued at approximately $4,670, showing over a 4% increase in the past 24 hours.
