Volume/Market-Cap Turnover
Trading volume over a period divided by market capitalization, describing how much of an asset changes hands relative to its size.
The ratio is used as a rough liquidity and attention measure, and it is most informative at the extremes. A very low ratio indicates thin trading, where a quoted price rests on few transactions and a modest order can move it. A very high ratio can reflect genuine activity, but it can equally reflect a small tradable float, an incentive program paying users to trade, or reported volume inflated by wash trading. Both inputs are estimates, so an unreliable supply figure or unfiltered venue data distorts the result. The equity equivalent is computed from audited share counts and volumes reported under exchange rules, which is the main reason the two are not directly comparable.
In practice
An asset whose reported daily volume exceeds its market capitalization is usually trading on venues whose reported figures deserve checking against adjusted volume.
The common misunderstanding
A high turnover ratio is not evidence of genuine demand; incentivized or wash trading on venues with no reporting standards produces the same number.
The figure this maps to
Daily trading volume expressed as a percentage of the asset's market capitalization.
Limits: Inflated exchange volume in the numerator and an editorial circulating supply in the denominator can move this ratio several-fold with no change in genuine activity. Newly launched tokens with a very small float print extreme turnover as a pure artifact of the small denominator, not as evidence of…