Imagine you're at a yard sale and see a bunch of people fighting over a slightly used toaster. That toaster might be the hottest deal of the day, according to the yard sale crowd. But what if you knew the person selling it got it for free just yesterday?

The MVRV indicator for cryptocurrency is kind of like that. It compares the current hype (market value) to the average price people actually paid for those coins (realized value).

Here's why it's relevant:

High MVRV: If the MVRV is super high, it's like everyone at the yard sale thinks the toaster is a priceless artifact. This might signal the price is inflated due to excitement and could be due for a correction (the yard sale crowd settles down and realizes it's just a toaster).Low MVRV: A low MVRV means people are getting those coins for cheap, like that free toaster. This could indicate a potential buying opportunity, but it's not guaranteed.

It's not a perfect science, but MVRV can be a clue if the cryptocurrency party is getting a little too crazy or if there might be some good deals hidden in the bargain bin.

Just getting started #btc #altcoins #binance