Does the surging NVT ratio suggest network ineffic
Does the surging NVT ratio suggest network inefficiencies, or something else?
Ethereum’s NVT ratio (market cap to transaction volume) has now surged to 194, the highest level so far this year.
Such a high reading may reflect slowing network activity despite rising prices, suggesting a possible overvaluation risk.
Historically, sharp spikes in NVT have often preceded consolidation or price pullbacks.
Therefore, while investor confidence remains high, the disconnect between price and actual on-chain usage is cause for concern.
This divergence could hinder Ethereum’s further gains unless on-chain activity strengthens, supporting its valuation.
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