Definition ∞ Stablecoin velocity metric measures the rate at which stablecoins change hands or are transacted within a given period. This indicator reflects how frequently stablecoins are used for payments, trading, or other financial activities across a network. High velocity suggests active utility and robust economic circulation.
Context ∞ Analysts and market observers closely monitor the stablecoin velocity metric to assess market activity and the utility of stablecoins within the broader digital asset ecosystem. Increases in velocity can indicate heightened trading, lending, or payment processing. Regulatory discussions around stablecoin oversight often consider this metric as a measure of systemic importance and usage.
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