How to check the currency turnover rate

How to query the currency circle turnover rate: visit the trading platform, select a trading pair; check the 24-hour trading volume, and use the formula turnover rate = 24-hour trading volume/total circulation volume to calculate the turnover rate; the currency circle turnover rate measures liquidity And market participation, a high turnover rate indicates good liquidity, and a low turnover rate indicates poor liquidity.

How to check the currency circle turnover rate

How to check the currency circle turnover rate?

The steps to check the currency circle turnover rate are as follows:

1. Visit the trading platform:

Go to your cryptocurrency trading platform.

2. Select a trading pair:

Find the trading pair you want to check the turnover rate, such as BTC/USDT.

3. Check the trading volume:

On the trading pair page, find the 24-hour trading volume data.

4. Calculation:

Use the following formula to calculate the turnover rate:

Turnover rate = 24-hour trading volume / total circulating volume

Example:

Assume 24-hour trading of the BTC/USDT trading pair The amount is 100,000 BTC, and the total circulation of Bitcoin is 19,150,900 BTC, then the turnover rate is:

Turnover rate = 100,000 BTC / 19,150,900 BTC = 0.0052

That is, 0.52% of the Bitcoin circulation has been carried out in the past 24 hours transaction.

The meaning of turnover rate

The currency circle turnover rate measures the ratio of the number of assets traded to the total circulation in a specific period of time. It indicates an asset’s liquidity and market participation.

High turnover rate:

• indicates that the asset is highly liquid and easy to buy and sell.
• May reflect active market activity or widespread speculation.

Low turnover rate:

• indicates low asset liquidity and difficulty in trading.
• May reflect lack of market interest or limited asset supply.

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