Volume / Market Cap Turnover

Turnover asks what share of an asset's total market value changes hands in a day. It is used as a rough liquidity screen, since an asset with a large market capitalization and negligible turnover cannot absorb size at the quoted price. Both inputs are estimates, which makes this a ratio of one contested figure to another.

Wie es berechnet wird

24-hour trading volume / market capitalization x 100

Wo es irreführt

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 depth. Stablecoins routinely show turnover above one hundred percent because they are the settlement leg for trades in other assets, which is a payments function and says nothing about interest in the stablecoin itself. Wrapped assets show turnover against a market cap that is a claim on an asset counted elsewhere.

Der Aktienvergleich und warum er scheitert

Equity turnover ratio computed as share volume over shares outstanding; the equity inputs are an audited share count and tape-reported volume, so the equity ratio does not carry either of the two estimation problems that dominate this one.

Einen hohen oder niedrigen Wert lesen

Higher turnover means a larger share of the asset's market value traded in the day; very low turnover means a quoted market capitalization rests on little actual trading. Extreme readings in either direction usually point to a definitional artifact worth checking before drawing any conclusion.