How WooBull NVT Signal Ratio (Network Value to Transactions) Works


As is clear to all of us by now, it can be difficult to value cryptos due to a host of volatility related factors. However, blockchain developers are constantly coming up with newer ways of keeping tabs on different currencies and how they are doing in the current market scenario.

The WooBull NVT Signal (Network Valuation Divided By Transaction Value) ratio can be thought of as an all new “valuation indicator” that makes use of blockchain fundamentals such as ‘transaction throughput’ and other specialized data to give accurate market predictions in relation to the value of different alt-coins.

The WooBull NVT Signal Ratio (Network Valuation Divided By Transaction Value) Crypto Valuation

The standard NVT Ratio is essentially the resultant value that is obtained upon dividing the “Network Valuation Factor” with the “Transaction Value flowing through the blockchain”. The result is then petered out via the use of something called as a “moving average”.

However, in its latest iteration we can see that the NVT ratio is modified by applying a moving average to the volatile Transactions component. This is done without interfering with the already stable Network Valuation element of the system.

As a result of this modification, we can see that users are able to receive a performance chart this is not only highly responsive, but can also be used as a good monetary value indicator for a plethora of alt-coins.

Similarly, at this point it should also be mentioned that NVT is amongst the first trading indicators to make use blockchain data rather than using conventional information such as base price, transaction volume that is obtained from online exchanges.

From a functional aspect, we can see that when the level of any currency exceeds the 150 mark, it enters the ‘overbought zone’. Similarly, when the levels start to dip below 45, the asset tends to be oversold.

How Can I Gain Access To NVT?

As we speak, users can check out the live NVT signal chart over at Woobull.com.

However, in the coming future, the developers of this system aim to create a platform called Fomonomics that will be able to present all of this off-exchange data to traders and investors in a highly user friendly manner.

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