When it comes to cryptocurrencies, Bitcoin (BTC) has long been considered the king, while Ethereum (ETH) and Litecoin (LTC) are typically regarded as secondary.

However, when compared to TRON (TRX), each of their Network to Transaction Ratios (NVT Ratio) are almost always lower.

TRON on the Throne

The NVT Ratio is a cryptocurrency specific technical analysis tool that is used to measure the ratio between the network value of a digital asset and the daily transaction volume in USD. The measure was developed by Dimitry Kalichkin back in 2018 and is very similar to the way profit to earning (P/E) ratios are calculated for tracking investments in traditional assets.

The NVT Ratio of a cryptocurrency gives analysts a fairer measuring to compare the underlying value of a digital asset through its on-chain transaction volume against its open market value.

According to data collated by cryptocurrency enthusiast Mike McCarthy on Twitter, the NVT Ratio of TRON is often much better than that of other leading digital assets, including both Bitcoin and Ethereum. This implies that TRON is undervalued for the time being, which could indicate a potential buying opportunity for anyone looking to invest in the asset for the long term.

According to our own research, Bitcoin has maintained a healthier NVT ratio than Bitcoin Cash (BCH) throughout almost all of 2019, while Litecoin has maintained a higher NVT ratio than Bitcoin since April 2018.

More Positive Developments

Among altcoins with their own blockchain, TRON is arguably one of the most well-rounded at the moment. In a matter of just months, it became the eleventh most valuable cryptocurrency, leaping past dozens of altcoins to secure its spot.

Recently, TRON has been the recipient of significant press coverage off the back of a postponed lunch between CEO Justin Sun and investor Warren Buffet. Beyond this, numerous partnerships with high profile businesses have helped to develop a wider appeal for the cryptocurrency. For instance, TRON’s recent partnership with Mousebelt’s Blockchain Education Alliance has yielded a large amount of media coverage, while helping to improve TRON adoption.

The potential for TRON to grow considerably in the future also appears to have been recognized by those behind the world’s leading cryptocurrency exchange, Binance. The exchange is currently operating a lending product that yields 16% APR for anyone holding TRC20 USDT on the exchange

Although the lending scheme appears to be legitimate, questions have been raised on social media about the longevity of the scheme, while some believe that it appears ‘too-good-to-be-true’, based on similar failed products by other platforms.

What do you think about the long-term prospects of TRON? Does its high NVT ratio truly indicate that it is undervalued? Let us know your thoughts in the comments below.