Had an idea few days back. How to calculate supply/demand of a coin in minutes.
Take timeinterval x (1 day / 7 days / 30 days / ...)
Take how many coins have been traded during that time and divide by the number of coins that have been minted in the same time.
The number you get is how many times the network output of new coins was turned over in timeframe x
A rough indicator for supply/demand especially useful on larger timescales.
Very good for fundamental analysis of coins and also very good for direct comparison of different coins.
Inflation vs demand indicator.
Enjoy your new tool.
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I came up with the idea first when i was analysing Unobtanium supply/demand, a brilliant coin in that regard btw since it doesn't take much volume for it to let this indicator go to insane hights. Just a heads up. Have fun trading.
Take timeinterval x (1 day / 7 days / 30 days / ...)
Take how many coins have been traded during that time and divide by the number of coins that have been minted in the same time.
The number you get is how many times the network output of new coins was turned over in timeframe x
A rough indicator for supply/demand especially useful on larger timescales.
Very good for fundamental analysis of coins and also very good for direct comparison of different coins.
Inflation vs demand indicator.
Enjoy your new tool.
---------
I came up with the idea first when i was analysing Unobtanium supply/demand, a brilliant coin in that regard btw since it doesn't take much volume for it to let this indicator go to insane hights. Just a heads up. Have fun trading.
How do you reconcile this with artificial/incremental bot trading, pumps and non-exchange demand?
Plus I suspect some devs use circular trading (buying and selling to themselves) to give the appearance their coin has huge volumes of trades, when in reality nobody is interested in it.
