--- title: "Free-Float MVRV: Formula, Meaning" description: "A variant of the market value to realized value ratio computed only on the free-float portion of supply. Providers commonly exclude coins considered..." canonical: https://www.getswoopr.com/indicators/crypto/free-float-mvrv/ source: "Swoopr Investment: https://www.getswoopr.com" --- ## Direct Answer > A variant of the market value to realized value ratio computed only on the free-float portion of supply. Providers commonly exclude coins considered inaccessible or long dormant, so the ratio reflects coins that are plausibly tradable. Like standard MVRV, a value above 1 means the free-float market value exceeds the aggregate cost basis of those coins (holders in profit on average), and below 1 means below cost basis. # Free-Float MVRV: Formula, Meaning, Signals, Examples and How to Use It ## How Is Free-Float MVRV Calculated? A variant of the market value to realized value ratio computed only on the free-float portion of supply. Providers commonly exclude coins considered inaccessible or long dormant, so the ratio reflects coins that are plausibly tradable. **Formula:** `Free-float MVRV = free-float market cap / free-float realized cap` **Inputs:** - Free-float supply definition (provider specific) - Current price - Realized cap for the free-float supply **Worked example.** With an illustrative free-float market cap of 900 and free-float realized cap of 600 (billions of USD), the ratio is 1.50. The inputs are illustrative numbers, not market data. **Reading it.** Like standard MVRV, a value above 1 means the free-float market value exceeds the aggregate cost basis of those coins (holders in profit on average), and below 1 means below cost basis. Removing inaccessible supply is intended to sharpen that reading. **Limits.** What counts as free float is a modelling choice that varies by provider, so values are not interchangeable with ordinary MVRV or with other free-float versions. Cost basis is the last on-chain move price, not purchase price. ## What is Free-Float MVRV? A variant of the market value to realized value ratio computed only on the free-float portion of supply. Providers commonly exclude coins considered inaccessible or long dormant, so the ratio reflects coins that are plausibly tradable. ## How to use Free-Float MVRV Like standard MVRV, a value above 1 means the free-float market value exceeds the aggregate cost basis of those coins (holders in profit on average), and below 1 means below cost basis. Removing inaccessible supply is intended to sharpen that reading. A reading alone is never a buy or sell signal; it needs context from price structure, volume, volatility and the broader market regime. ## Strengths - Restricting both numerator and denominator to the same supply subset keeps the ratio consistent, so it compares like with like. - Excluding dormant coins focuses on supply that has a realistic chance of being traded, which changes the base against which unrealized profit is measured. - Reproducible when the formula and data convention are fixed. ## Weaknesses and limitations - Removing dormant coins from both sides changes the ratio by an amount that depends on their cost basis, so it can sit well above or below regular MVRV. - As the free-float definition is redrawn by a provider, past values may be restated, so a chart can differ between dates of retrieval. - Correlated indicators can create false confidence by repeating the same underlying information. ## Editorial and risk note This page is educational content, not individualized investment advice. It should not imply guaranteed prediction, accuracy or outperformance. ## Frequently Asked Questions Is Free-Float MVRV a buy or sell signal? No. Like standard MVRV, a value above 1 means the free-float market value exceeds the aggregate cost basis of those coins (holders in profit on average), and below 1 means below cost basis. What counts as free float is a modelling choice that varies by provider, so values are not interchangeable with ordinary MVRV or with other free-float versions. A trade built on it still needs a trigger, an invalidation rule, a position size and realistic execution assumptions. What is the best setting for Free-Float MVRV? Free-Float MVRV is computed from free-float supply definition (provider specific); current price; realized cap for the free-float supply, so the choices that matter are the data convention and the window it is read over. Test those across instruments, regimes and out-of-sample periods instead of fitting one historical winner. Can Free-Float MVRV be used by itself? What counts as free float is a modelling choice that varies by provider, so values are not interchangeable with ordinary MVRV or with other free-float versions. Cost basis is the last on-chain move price, not purchase price. For that reason it is read next to measures of direction, participation, valuation, liquidity and risk, not alone. Does Free-Float MVRV work on every timeframe? The calculation (Free-float MVRV = free-float market cap / free-float realized cap) can be run on any bar size, but behavior is not portable: a reading on a five-minute chart describes a very different market window from the same reading on a daily chart. Validate the exact timeframe before relying on it. Why does Free-Float MVRV give false signals? Removing dormant coins from both sides changes the ratio by an amount that depends on their cost basis, so it can sit well above or below regular MVRV. As the free-float definition is redrawn by a provider, past values may be restated, so a chart can differ between dates of retrieval. Lag, noise and regime changes add to this, because market participants react to new information after the reading is calculated. How should Free-Float MVRV be backtested? Rebuild Free-Float MVRV from free-float supply definition (provider specific) using point-in-time data, write the rules before testing, include delisted securities where relevant, model realistic fills and costs, reserve a validation sample and compare with a simpler baseline. S Swoopr Editorial Team The Swoopr Editorial Team produces independent investment education, research, and tools for understanding markets, evaluating opportunities, and managing risk. All content is educational only and does not constitute personalized investment advice. 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