Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Former Bloomberg analyst: When NVU reaches the level of 180-200 times, it indicates that the market is overly enthusiastic

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
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

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.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!