NVT Ratio frames market value against daily on-chain transfer volume measured from spent transaction inputs. In this definition, the denominator is the USD value of coins spent during the day, so the series tracks how large spot valuation is relative to observed settlement throughput.
A rising ratio means market cap is expanding faster than transfer volume. A falling ratio means transfer flow is catching up or valuation is resetting. It is most useful as a regime filter and in comparison with Velocity, NVT Ratio Adjusted, or the smoother NVT Signal variants.
The main limitation sits in the denominator. Batching, exchange flows, custody reshuffling, and other shifts in transaction behavior can move transfer volume without a clean change in speculative conditions, which makes raw NVT harder to read across structural changes in network usage.
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