Volume as a fraction of supply — On-chain volume as a fraction of supply
Velocity measures value moving through the Bitcoin blockchain: Volume as a fraction of supply. It provides an on-chain view of transaction scale and turnover.
Assess volume relative to its own history and to price. A sustained expansion can show broader participation, while sudden spikes should be checked for exchange or wallet operations.
Raw on-chain volume includes change outputs and internal movements unless adjusted. It is a useful activity proxy, not a complete measure of economic settlement.