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Bitcoin Cash (BCH) Among Cheapest Valued Major Crypto Networks and Supports “Buy” Signal

Jun 07, 2019

 

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Network Value to Transaction Ratio in Major Cryptocurrencies

Name Ticker 10-Day EWMA NVT Ratio
Bitcoin BTC 20.11x
Ethereum ETH 35.59x
Litecoin LTC 19.14x
Bitcoin Cash BCH 4.14x
EOS EOS 31.30x

 

  • Bitcoin Cash (BCH) has by far the cheapest Network Value to Transaction Ratio (NVT Ratio) among the major cryptocurrencies highlighted above of 4.14x. While it is important to consider other factors apart from network valuation when considering buying cryptocurrencies, BCH also receives a “Buy” rating from the Quantamize Crypto Trading Signals, so this is our highest conviction buy idea highlighted above.  
     
  • Litecoin (LTC) follows BCH in terms of network valuation, although its NVT Ratio is significantly more expensive at 19.14x. LTC also maintains a “Buy” rating in the Quantamize Crypto Trading Signals. Ahead of LTC’s mining reward halvening in less than two months, now may be a smart time to consider buying the altcoin.  
     
  • Bitcoin (BTC) maintains a moderately valued network with an NVT Ratio of 20.11x. Curious to see how BTC’s NVT Ratio will be impacted if the benchmark coin’s price breaks out again. During the rally of BTC in May, BTC daily volume actually touched all-time highs, which also indicates all-time high network activity. The impact on BTC’s NVT Ratio, however, depends on whether or not the growth of network activity outpaces that of the benchmark coin’s price.  
     
  • EOS (EOS) is the second-most expensive major cryptocurrency network with an NVT Ratio of 31.30x. The expensive valuation on the EOS network comes despite a 18% sell off of the coin this week.  
     
  • Ethereum (ETH) is the most expensive cryptocurrency highlighted above in terms of NVT Ratio, calculated as 35.59x. This is surprising considering that ETH is the largest utility coin and decentralized application (dApp) platform in the world. Utility coins like ETH aim to host a wide array of dApps on their networks, so it is unexpected to see such an expensive multiple on the network, which implies a low degree of network activity relative to the network’s value.

 

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