Term

Velocity of Money

The rate at which money circulates in the economy; how often one unit changes hands.

Type:

economics

metrics

definition

In crypto, velocity considers how actively coins are used versus held. High velocity can indicate more transactional use; low velocity suggests hoarding or long-term holding.

Example 1.1

"Despite rising market cap, on-chain velocity fell, signaling more long-term holding behavior."

Related Terms

Volume

→

The total amount of a cryptocurrency or asset that has been traded within a specific timeframe.

trading

metrics

Liquidity

→

The ease with which a crypto asset can be bought or sold without affecting the market price.

finance

trading

Market Cap

→

The total value of all circulating units of a particular cryptocurrency.

finance

trading

All terms and definitions may update as the Cryptionary improves.