Supply Turnover

Definition ∞ Supply Turnover measures the rate at which the circulating supply of a digital asset changes ownership over a specified period. It indicates how frequently assets are traded among market participants. A high turnover suggests active trading and liquidity, while a low turnover may imply holding behavior or illiquidity. This metric provides insight into market dynamics.
Context ∞ Supply turnover is a relevant metric often analyzed in crypto news to assess market liquidity, investor sentiment, and the overall health of a digital asset’s trading environment. It helps differentiate between assets primarily held for long-term investment and those actively used for transactions. Understanding this metric assists in interpreting market trends and asset distribution patterns. It is a key indicator for evaluating market activity.