# Network Velocity

Velocity measures the network vibrancy and is a non-price indicator, which means it is calculated from on-chain metrics alone. To calculate velocity, we take the Transaction Value (measured in BTC) and divide it by the Total Coin Supply (adjusted), and then annualise it. Note that the adjusted bitcoin supply reflects the total number of coins mined, less those that haven't been distributed (see First Spend (opens new window)). These coins are either lost or held in miner inventories for an extended time.