What is this indicator?
Measures a cryptocurrency's market value relative to its network's daily transaction volume, similar to the P/E ratio in stocks. A very high reading can signal the asset is expensive relative to its network's real usage.
How to read the chart
Sharp changes or a move outside this metric's normal range often coincide with important price turning points, and it's used as a secondary confirmation alongside technical analysis.
Practical tip
On-chain data is best used to complement technical analysis, not replace it; interpreting a single metric in isolation can be misleading.