The transition to Proof-of-Stake and staked ETH locked in contracts altered on-chain velocity. Some analysts argue RV calculation needs adjustment for staking yields.
Using a 90-day window makes the Z-Score very sensitive to recent moves—great for trading, poor for macro bottoms. Using a 2-year window smooths noise but reacts slowly to new regimes. You must choose the right tool for your timeframe. Ethereum Mvrv Z-score
The raw number is helpful, but the cross of the Z-Score above/below the zero line is critical. The transition to Proof-of-Stake and staked ETH locked
| Z-Score Value | Market Sentiment | Recommended Action | | :--- | :--- | :--- | | > 3.5 | Extreme Euphoria / Bubble | Distribution: Take profits. Reduce leverage. Do not buy. | | 1.5 – 3.0 | Bull Market / Expensive | HODL: Hold existing positions. Raise stop losses. | | 0 – 1.5 | Fair Value / Accumulation | Buy the Dip: Begin Dollar Cost Averaging (DCA). | | < 0 (Negative) | Capitulation / Despair | Aggressive Accumulation: This is "generational bottom" territory. | | Z-Score Value | Market Sentiment | Recommended
With the rise of Lido (stETH) and Rocket Pool, a massive portion of ETH is liquid staking derivatives (LSDs). These tokens represent staked ETH but trade on DEXs. The MVRV Z-Score may underestimate true value because staked ETH is "realized" at an old price but is actually working capital.
Before understanding the Z-Score, one must first grasp the two core components of the ratio: Market Value and Realized Value.