Definition. This chart shows the Cointime-Adjusted Stock-to-Flow Ratio (🟡), which takes into account the relative economic activity of the coin supply when assessing relative scarcity, alongside the 🟢 Nominal Stock-to-Flow Ratio for comparison.

Technical. Both ratios are constructed as the inverse of an inflation rate:

• Nominal Stock-to-Flow = 1 / Nominal Inflation Rate (🟢)
• Cointime-Adjusted Stock-to-Flow = 1 / (Nominal Inflation Rate x A2VR) (🟡)

where Nominal Inflation Rate = diff(Circulating Supply, 1d) x 365 / Circulating Supply and A2VR = Liveliness / Vaultedness is the Activity-to-Vaulting Ratio.

Interpretation. The cointime-adjusted variant considers the scarcity of new issuance relative to Active Supply, being the supply region which is economically 'active'. Because the adjustment scales issuance by the activity of the network, the adjusted stock-to-flow runs above the nominal one whenever the active region is small relative to the vaulted region — with most supply vaulted, effective issuance pressure is discounted and scarcity registers higher than the headline figure suggests. Structural steps in both traces mark the halvings, while divergences between them track shifts in the balance of active versus vaulted supply between those events.

Notes. This chart was developed within the Cointime Economics framework for Bitcoin, a joint venture between Glassnode and ARK Invest. Full details are available in two formats: an overview primer (Version I, published via ARK) and a comprehensive guide for specialists (Version II, published via Glassnode). Built from Circulating Supply and Liveliness. The inflation-side counterpart is the Cointime-adjusted Inflation Rate; the A2VR primitive is charted in Activity-to-Vaulting Ratio.