Former Bloomberg analyst: When NVU reaches the level of 180-200 times, it indicates that the market is overly enthusiastic
2024/02/29 02:37
Bitget offers one-stop trading for cryptocurrencies, stocks, and gold. Trade now!
A welcome pack worth 6200 USDT for new users! Sign up now!
Former Bloomberg analyst Jamie Coutts CMT published "
Cryptocurrency Fundamental Analysis: Network Value and User Ratio" on the X platform. He stated that the Network Value to Users (NVU) ratio is an ideal but far from perfect fundamental indicator for
blockchain assets. The premise is simple--network value depends on utility, measured by user numbers (DAUs) and other chain parameters (transactions, transfer values, fees/Gas etc).
Two weeks ago, Real Vision's latest report revealed how cheap the SCP universe was compared to the past. Since then, prices have risen about 15%. The price increase exceeded DAUs' growth of around 5%, causing a slight rise in NVU ratio to 88x. Despite a slight increase in multiple expansions over the past few weeks, I expect that by 2025, the SCP industry will continue to rise from its current $562 billion to $1.5-1.8 trillion - an increase of approximately two-to-three times - based on continued positive user growth momentum into 2025 (our DAU should reach from currently 6-7 million up to 11 million), and some multiple expansion in late bull
markets. When NVU reaches levels of 180-200x it should serve as a fundamental warning signal indicating excessive market enthusiasm; we are nearing peak cycle.
0
0
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
Understand the market, then trade.
Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.
Trade now!
You may also like
Vincenzo Zucchi shareholders approved FY2024 financial statements at AGM
Reuters•2026/08/31 17:07
Market Strategist Says XRP Is About to Crash Hard. Here’s why
TimesTabloid•2026/08/31 17:03
Integrum to webcast Q1 2026/27 interim report presentation
Reuters•2026/08/31 17:02
Crypto prices
MoreBitcoin
BTC
$78,693.84
-0.61%
Ethereum
ETH
$2,469.71
-2.06%
Tether USDt
USDT
$0.9998
-0.01%
BNB
BNB
$689.64
-1.92%
XRP
XRP
$1.38
-2.95%
USDC
USDC
$1
+0.01%
Solana
SOL
$102.89
-3.47%
TRON
TRX
$0.3331
-2.43%
Hyperliquid
HYPE
$83.84
-0.13%
Dogecoin
DOGE
$0.08297
-3.69%
How to buy BTC
Bitget lists BTC – Buy or sell BTC quickly on Bitget!
Trade now
Become a trader now?A welcome pack worth 6200 USDT for new users!
Sign up now