Introduction to Commodities
Trading commodities predates stocks and bonds by many centuries as merchants would meet along trade routes to exchange agricultural and craft products.
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.