Investing 101

Ratio of Free Float to Net Transfer Value (aka FFnVT): 

This ratio looks at the relationship between the free float network value (or market cap) versus the 90-day moving average of the adjusted transfer value. A value of 1 means that in 90 days, the whole market cap changes hands. A high level shows meaningful activity and trading volume. A low level shows reduced activity and trading volume. 

Realised Value to Adjusted Transfer Value (aka RVT):

This ratio looks at the network’s realised value to the 90-day moving average of the adjusted transfer value. A high level points to high supply and a low level points to low supply.

Similar to equities, the supply of a coin indicates its demand and hence the potential value of the asset. 


Crypto Ratios 

Crypto Indicators

Remember: Blockchain technology is a distributed ledger that connects a decentralised network on which users can send transactions and build applications without the need for a central authority or server.

When analysing a network, its distribution factor and value transaction ratio can help understand the coin’s supply and value, respectively. 

The Network Distribution Factor (NDF) is a concentration measure. It is calculated as the ratio of supply held by addresses with at least one ten-thousandth of the current supply of native units to the current supply. A high NDF means supply is very concentrated. On the other hand, a low NDF means supply is very distributed.

The ratio of the network value (or market capitalization, current supply), also referred to as NVT, divided by the adjusted transfer value. This is a valuation measure and a high level shows that the coin has a large market cap, compared to its traded flow, and it is then considered expensive. A low level shows that the coin has a small market cap, compared to its traded flow, and it is then considered cheap. It can be thought of as the rough price to book ratio for crypto assets. 
