> For the complete documentation index, see [llms.txt](https://docs.glassnode.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.glassnode.com/further-information/metric-guides/nvt/velocity.md).

# Velocity

Velocity is a measure of how quickly units of currency are circulating in the network.

## Indicator Overview

Velocity is a measure of how quickly units are circulating in the network, and is calculated by dividing the on-chain transaction volume (in USD) by the [market cap](/further-information/metric-guides/market-capitalization.md) (i.e. the inverse of the [NVT Ratio](/further-information/metric-guides/nvt/nvt-ratio.md)).

<figure><img src="https://2190898932-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-Ldi5WtVBeQ2iFbdqJ1a%2Fuploads%2Fgit-blob-283ad6910cd65a2cfd1c5427b90977f20f550cde%2F1.png?alt=media" alt="Bitcoin: Velocity"><figcaption></figcaption></figure>

* [View Velocity in Glassnode Studio](https://studio.glassnode.com/metrics?a=BTC\&m=indicators.Velocity)
* [View Velocity in Glassnode API Docs](https://docs.glassnode.com/basic-api/endpoints/indicators#velocity)

## How is it measured?

Velocity is calculated by dividing the on-chain transaction volume (in USD) by the [market cap](/further-information/metric-guides/market-capitalization.md) (i.e. the inverse of the [NVT Ratio](/further-information/metric-guides/nvt/nvt-ratio.md))

$$
\textrm{Velocity} = \frac{1}{\textrm{NVT Ratio}} = \frac{ \textrm{Transaction Volume}~~{\color{gray}{\[\textrm{USD}]}} }{ \textrm{Market Cap}~~{\color{gray}{\[\textrm{USD}]}} }
$$

## Further Resources

Willy Woo - [Bitcoin Velocity vs. US Money Stock](https://charts.woobull.com/bitcoin-velocity/)