MVRV - Market Value To Realized Value

Definition

MVRV

MVRV shows the average profit/loss of all the coins currently in circulation given the current price.

We need to define two terms:

• MV as in Market Value refers to the well-known capitalization. The second part is the
• RV as in Realized Value. It is an alternative to the Market Value where instead of the current price, every coin/token is multiplied by its acquisition price.

The definition of MVRV is:

MVRV value of 2 means that if all holders sell their coins/tokens at the current price, they will generate an x2 profit on average. In this sense, MVRV shows the ratio between the current price and the average price of every coin/token acquired. The more the ratio increases, the more people will be willing to sell as the potential profits increase.

The value of MVRV gives an idea of how much overvalued or undervalued an asset is.

If the MVRV value is between 0 and 1, then the market is "undervalued" on average, meaning most people will be realizing losses if they all sell their holdings at the current price.

Keep in mind that this is in the ideal case and does not account for the addresses with private keys or graveyard addresses. The way to adjust for this is to look at the historical values for the MVRV values. As the value is approaching historical maximums or minimums, then the possibility of a highly overvalued or undervalued market is much higher.

Another way to deal with lost private keys and graveyard addresses is to compute the MVRV value only taking into account the subset of tokens that have been active at least once in the last several years.

Timebound

Timebound Metrics available.

The timebound metrics can help exclude the inactive addresses. These metrics are computed the same way as the MVRV metric, with the only difference that they take into account only the coins/tokens that have moved in the desired time range. Examples: mvrv_usd_365d is computed on the coins/tokens that moved at least once in the past 365 days. mvrv_usd_60d is computed by taking only the coins/tokens that moved at least once in the past 60 days.

Comparing timebound MVRV values of different time ranges can clarify how much profit/loss long-term and short-term holders can realize.

Change Metrics

Change Metrics

MVRV Long/Short Difference

MVRV Long/Short Difference is defined as mvrv_usd_365d - mvrv_usd_60d

Negative values mean that short-term holders will realize higher profits than long-term holders if they sell at a price at this moment. Positive values show the opposite.

During strong and long bull runs, this metric tends to grow, and during bear markets it is decreasing. The rationale is that during strong bull runs, the long term holders are determining when the bull run will end when they start selling, while during bear markets, the long term holders are at a loss on average and the short term holders manage to realize profits

Access

Special Restrictions.

Measuring Unit

Ratio

Data Type

Timeseries Data

Frequency

All available assets have Daily Intervals A subset of the available assets that consists of some of the bigger assets have Five-Minute Intervals

Latency

On-Chain Latency

Available Assets

The daily interval MVRV metrics are available for these assets

The 5-minute MVRV metrics are available for these assets

SanAPI

The daily metrics are available under the mvrv_usd name under the mvrv_usd_<interval> name for the timebound metrics. The 5-minute interval metrics are available under the mvrv_usd_intraday name under the mvrv_usd_intraday_<interval> name for the timebound metrics.

Example of query for mvrv_usd:

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{
  getMetric(metric: "mvrv_usd") {
    timeseriesData(
      slug: "santiment"
      from: "2019-01-01T00:00:00Z"
      to: "2019-09-01T00:00:00Z"
      interval: "7d"
    ) {
      datetime
      value
    }
  }
}

Run in explorer

Example of query for mvrv_usd_intraday:

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{
  getMetric(metric: "mvrv_usd_intraday") {
    timeseriesData(
      slug: "bitcoin"
      from: "utc_now-90d"
      to: "utc_now-30d"
      interval: "3d"
    ) {
      datetime
      value
    }
  }
}

Run in explorer

Example of query for timebound MVRV:

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{
  getMetric(metric: "mvrv_usd_7d") {
    timeseriesData(
      slug: "santiment"
      from: "2019-01-01T00:00:00Z"
      to: "2019-09-01T00:00:00Z"
      interval: "7d"
    ) {
      datetime
      value
    }
  }
}

Run in explorer

Example of query for MVRV long-short difference:

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{
  getMetric(metric: "mvrv_long_short_diff_usd") {
    timeseriesData(
      slug: "santiment"
      from: "2019-01-01T00:00:00Z"
      to: "2019-09-01T00:00:00Z"
      interval: "7d"
    ) {
      datetime
      value
    }
  }
}

Run in explorer