Explanation

To find the Fair Value, we take the 2-year median of NVT (opens new window), which provides a fair representation of a normal range; somewhere between a bull market and a bear market. We then use this data to derive a reasonable dollar value for bitcoin, relative to the current level of transaction value throughput on the network.

Using this methodology, we get a median of 9.1 weeks. This means that the network is at, or close to, Fair Value when the network value (bitcoin price*adjusted coin supply) is 9x the volume transacted over it.