According to BlockBeats, on March 5, IntoTheBlock reported that Ethereum's Market Value to Realized Value (MVRV) ratio dropped to 1.01, marking its lowest point since October 2023. At that time, Ethereum was trading slightly below $1,600.
The MVRV ratio is a metric used to compare an asset's current market value with its realized value, offering insights into whether the asset is overvalued or undervalued. This indicator helps identify extreme points in market sentiment, determining if the trading price of an asset is above or below the majority of investors' purchase costs. A high MVRV value typically suggests that the asset is overvalued and may enter a profit-taking phase, while a low MVRV value often indicates undervaluation, potentially signaling a buying opportunity.
