Term
Velocity of Money
The rate at which money circulates in the economy; how often one unit changes hands.
Type:
economics
metrics
1
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.
