Definition. Velocity measures how quickly units are circulating in the network.

Technical. Computed as on-chain transaction volume (in USD) divided by market cap, the inverse of the NVT ratio. For BTC, volume is change-adjusted. For DOGE, TON, TRX and XRP, all transfers are counted. For ETH, only the value of top-level transactions is counted, so internal transfers are excluded, and for ETH tokens, self-transfers are excluded. Note that except for ETH and ETH tokens, the market cap in this metric is computed as the sum of all on-chain balances times the price. It may be different from the metric Market Cap, which excludes locked and treasury funds and includes supply on other blockchains.

Interpretation. Readings above 1 mean the entire market cap circulates on-chain more than once per day, while readings below 1 mean coins are sitting still relative to network value.