GlossaryAdvanced
MVRV Ratio
The ratio between an asset's market capitalization and its realized capitalization, used to gauge aggregate unrealized profit or loss.
The MVRV (market value to realized value) ratio compares a network's current market capitalization to its realized capitalization — the aggregate value of each coin's supply valued at the price it last moved on-chain, rather than at today's price.
An MVRV above 1 means the market, in aggregate, is sitting on an unrealized gain relative to the price paid; below 1 means the opposite. See Kaavon's dedicated MVRV Ratio article for how it's calculated and its documented limitations.
Examples
- An MVRV ratio well above 1 is commonly discussed as indicating the network's holders are sitting on substantial aggregate unrealized gains.
- MVRV is one of several on-chain valuation metrics that compares market value against a cost-basis-style reference point rather than against raw supply.