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.

No indicator is infallible. The Ethereum MVRV Z-Score has limitations you must respect.

. This oracle didn't look at the stars; instead, it watched the gap between two powerful forces: Market Value (the price everyone sees) and Realized Value (the price where everyone actually bought in). The Legend of the Three Zones

When all three flash green, historical odds favor a generational low.

The MVRV Z-Score is an on-chain indicator that identifies periods where Ethereum is extremely overvalued or undervalued relative to its "fair value". It uses three key components: Market Capitalization (Market Value):