For a more in-depth explanation of 'Velocity of Tokens', please click here. For a video breakdown of Transaction Volume and Token Velocity, click here.

This graph shows the average number of times that a token changes wallets each day.

Simply put, a higher token velocity means that a token is used in transactions more often within a set time frame.

Token Velocity can be used to explain various noteworthy events in the life of a project. For example, here’s Ethereum:

Notice the steep drop off?

The increased activity (and subsequent dip) correlates squarely to a huge ETH mixer that operated between March 2017 and March 2018.

Once the mixer was liquidated, token velocity toppled back to ‘normal’ levels, where it’s remained ever since.

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