Network Value to Transaction Signal (NVTS)

The NVTS is a smoothed variant of the NVT. It reduces short-term volatility by replacing daily transaction value with a moving average. Its aim was to develop a metric superior to NVT, as NVT peaks consistently lag behind bitcoin price peaks and therefore indicate speculative bubbles only after they have already burst [8] .

Following Kalichkin [8] , the NVTS is calculated as the ratio of the Market Cap to the 90-day moving average of Transaction Value:NVTS = Market Cap / 90-day MA of Transaction Value

The levels on the chart (20 and 30) are arbitrary and should only be used as a guide.