Definition. This chart presents monetary velocity corrected using the principles of Cointime Economics: the 🟣 Nominal Annualized Velocity alongside the 🔴 Cointime-Adjusted Annualized Velocity. The cointime adjustment substitutes total circulating supply for Active Supply in the denominator, accounting for the scale of economic volume throughput relative to the economically active proportion of the supply.

Technical. Both series annualize on-chain transfer volume and normalize by a supply region:

• Nominal Velocity = Transfer Volume x 365 / Circulating Supply (🟣)
• Cointime-Adjusted Velocity = Transfer Volume x 365 / Active Supply (🔴)

where Active Supply = Liveliness x Circulating Supply.

Interpretation. It can be seen that cointime adjustment signals a higher monetary velocity than the nominal case. Intuitively, this makes sense, as lost coins are effectively discounted from this model, indicating that observed transfer volumes are larger relative to the non-lost monetary base — and suggesting that the actual churn of coins in the network is larger than previously estimated. Rising velocity reflects a monetary base turning over more rapidly (transactional, speculative phases), while falling velocity reflects lengthening holding times; reading the adjusted variant avoids understating this churn during eras when a large share of supply sits dormant.

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 Transfer Volume, Circulating Supply and Liveliness. The supply regions used here are charted in Active and Vaulted Supply.