Token Velocity & Equation of Exchange Calculator

Calculate token velocity using the Equation of Exchange: MV = PQ. Model token market cap given transaction volume (PQ), velocity assumptions, and projected network usage. High velocity is a valuation headwind for utility tokens.

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$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.
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How It Works

Calculate token velocity using the Equation of Exchange: MV = PQ. Model token market cap given transaction volume (PQ), velocity assumptions, and projected network usage. High velocity is a valuation headwind for utility tokens

Each component has a specific meaning:

  • Equation of Exchange: MV = PQ — The equation of exchange: mv = pq recorded for the scenario being assessed.

Note: Interpret the token velocity result against the thresholds and context described above.

How to Use

Enter the Equation of Exchange: MV = PQ for the scenario you are assessing. Calculate token velocity using the Equation of Exchange: MV = PQ. Model token market cap given transaction volume (PQ), velocity assumptions, and projected network usage. High velocity is a valuation headwind for utility tokens. Use the token velocity result to inform your calculation.

Frequently Asked Questions