Coinblock Velocity
Ratio of coinblocks created to coinblocks stored. A cointime-native rotation frequency - high values indicate aging supply being spent, low values indicate stored supply.
What is it?
Fundamental cointime-economics invariant. Formula: V_CB = Coinblocks Created / Coinblocks Stored. The numerator aggregates coinblocks produced by all active UTXOs; the denominator aggregates coinblocks accumulated and non-destroyed at a given instant. The ratio measures the speed at which the coinblock stock renews - in other words, the fundamental rotation frequency of the active-coin pool. High coinblock velocity indicates fast rotation, low indicates slow rotation.
How to read
Normalized ratio on linear scale. The long-term curve tends to decrease as Bitcoin history lengthens and the accumulated coinblock stock grows faster than the created flow. Cyclical oscillations superimpose on this structural trend. Peaks above historical moving average: accelerated rotation phases (distribution or intense commercial usage). Troughs: slow rotation phases (deep accumulation or consolidation).
Key zones
No absolute thresholds - interpretation by relative comparison to rolling historical average. Very high rotation regimes (peaks) historically coincide with late-bull-market expansion or massive distribution phases. Very low regimes coincide with bear-market ends or long consolidation phases.
What to observe
Observe the relation between coinblock velocity and BTC price. A velocity staying low during a price rally marks the rise is carried by little rotation - a potentially fragile configuration. A velocity exploding in parallel with a rally indicates massive rotation, consistent with a bull-cycle end. Conversely, a price floor coinciding with minimal coinblock velocity marks a capitulation regime where rotation fades - historically a floor-construction indication.
Historical context
Coinblock velocity is computable since Bitcoin protocol origin (2009) as it relies on blockchain-intrinsic quantities. Historically, the metric shows long-term decay due to growing accumulation of non-destroyed coinblock stock. Cyclical oscillations around this trend captured major phases: 2013 rally, 2017 rally, 2020-2021 rally, 2024 rally.
Expert notes
Coinblock velocity is a structural invariant of cointime economics - it depends on no arbitrary parameter or cohort definition. Its theoretical robustness makes it a reliable indicator for inter-cycle comparison. Attention however to temporal resolution: the metric is computable daily but its meaningful variation operates on at least weekly windows.
Common mistakes to avoid
Coinblock velocity is not classical monetary velocity - it is a specific cointime quantity with different units and interpretation. Do not confuse with daily transaction turnover: coinblock velocity incorporates coin temporal dimension (age), not just raw movement. A coin changing hands 10 times in a day contributes less to the numerator than a coin moving once after 10 years of dormancy.
Programmatic access
REST API
curl -sS \
'https://api.trinityinsights.io/api/v1/onchain/velocity-coinblock/history?days=90' \
-H 'X-API-Key: $TRINITY_API_KEY'MCP server
{
"tool": "get_chart_value",
"metric_id": "velocity-coinblock",
"timeframe": "1y"
}Required tier: pro. See the pricing grid for the tier list and the MCP documentation for multi-client configuration.
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Institutional disclaimer
Trinity Insights is an educational and analytical tool. The metric above does not constitute investment advice. Trinity Insights is not a Crypto-Asset Service Provider (CASP) registered under MiCA Regulation (EU) 2023/1114. See the full disclaimer.