Metcalfe: log(mcap) ÷ log(active²) — log(market cap) ÷ log(active addresses²) — valuation vs network adoption per Metcalfe's law
NVM ratio is a Bitcoin valuation indicator: Metcalfe: log(mcap) ÷ log(active²). It compares market conditions with a long-term benchmark, network activity or available liquidity.
Metcalfe’s law says value should scale with users². High NVM = price outrunning adoption; low NVM = adoption outrunning price.
A valuation metric can stay elevated or depressed for months. Confirm it with price, holder behaviour and liquidity rather than treating it as a timing tool.