Stablecoin Velocity Index
· Updated daily at 15:20 UTC
As of Jul 2026, the stablecoin market aggregate velocity index stands at 0.230, every dollar of stablecoin supply turns over approximately 0.230 times daily in measured transaction volume. Velocity (V = daily volume ÷ market cap) applies the Federal Reserve's MV=PQ framework directly to stablecoins, distinguishing actively circulating coins from idle collateral. USDT leads velocity rankings through exchange settlement and cross-border remittance flows. DAI and yield-bearing instruments show the lowest velocity, reflecting capital locked in DeFi protocols. For policymakers, aggregate velocity is a proxy for the economic activity associated with stablecoin supply, helpful for separating active settlement use from passive collateral or yield holdings. A sustained decline may indicate that more supply is held idle relative to outstanding balances, though exchange-volume quality and incomplete off-chain settlement data mean velocity should be treated as a proxy rather than a diagnosis. We track this metric as a live daily time series, covering 449 daily snapshots from Apr 2025 to present.
Aggregate Stablecoin Market Velocity
Weighted average velocity across all tracked stablecoins (total daily volume ÷ total market cap), smoothed with a 7-day rolling average. A sustained decline can indicate that supply is being held less actively relative to outstanding balances.
Velocity by Coin, Top 5 (7-day avg)
Daily velocity for USDT, USDC, DAI, USD1, and PYUSD. USDT's consistently higher velocity reflects its role in exchange settlement and remittances.
Velocity Ranking, Latest Snapshot
Current daily velocity for all tracked stablecoins, sorted by activity. Green = active circulation (>0.15). Amber = mixed use (0.05–0.15). Blue = collateral/idle (<0.05).
The coin actively circulates, used in trading pairs, exchange settlement, and remittance flows. High velocity means the stablecoin is functioning as a medium of exchange.
For policymakers: Strong monetary function signal, supports genuine economic activity. For enterprise: High liquidity, reliable for large-volume settlement flows.
Mixed use, a blend of active payments and passive holding. Typical for stablecoins with both retail and DeFi adoption. Growing velocity in this range may signal ecosystem expansion.
For policymakers: Moderate monetary utility, monitor for trend direction. For enterprise: Functional for most use cases but may have liquidity gaps at scale.
Capital is largely idle, locked as DeFi collateral, deposited in yield vaults, or held speculatively. Low velocity is not inherently bad; it reflects a different economic role than payments.
For policymakers: Limited monetary transmission, capital not circulating in the real economy. For enterprise: May indicate thin liquidity, check order book depth before large flows.
Formula: Vi = Volume_24hi ÷ Market_Capi per coin, per day. Aggregate velocity = Σ Volume_24h (all tracked coins) ÷ Total Market Cap. Displayed values use a 7-day rolling average to reduce daily noise.
Data source: CoinGecko API (daily snapshots). Update frequency: Daily at ~15:30 UTC. Coverage: Apr 2025 – present (449 snapshots).
Theoretical basis: Monetary velocity from the Fisher equation MV=PQ. Applied to stablecoins, V measures how many times each unit of stablecoin supply is turned over per day in tracked on-chain and exchange volume.
Limitation: Volume data reflects CoinGecko-reported 24h exchange volume, which may include wash trading. Velocity figures may be overstated for coins with high wash-trade volume. On-chain velocity (transfers only) would be a more precise measure and is planned for a future version.