https://doi.org/10.1140/epjds/s13688-024-00518-6
Research
The microvelocity of money in Ethereum
1
Blockchain and Distributed Ledger Technologies Group, University of Zurich, Andreasstrasse 15, 8050, Zurich, Switzerland
2
UZH Blockchain Center, University of Zurich, Andreasstrasse 15, 8050, Zurich, Switzerland
3
DLT Science Foundation, London, United Kingdom
4
Institute of Finance and Technology, University College London, London, United Kingdom
a
francescomaria.decollibus@uzh.ch
Received:
27
November
2023
Accepted:
26
December
2024
Published online:
6
February
2025
The transfer velocity of money is a macroeconomic quantity that measures the frequency of exchanges in an economy. For cryptoassets it can be exactly measured adopting a new approach, MicroVelocity. In this study we apply the framework to Ether, the native cryptocurrency of the Ethereum blockchain, to investigate velocity and its top contributors and how they can be characterised in the Ethereum ecosystem. While the inequalities and heterogeneity in wealth are well known, we here find that the same inequalities occur as well for MicroVelocity distribution and that this inequality is not explained just by wealth, but rather by the behaviour and economic activity of each individual agent.
Key words: Blockchain / Ether / Ethereum / Velocity of Money / MicroVelocity / Transfer Velocity / Cryptocurrency / Cryptoassets / Digital Currency
© The Author(s) 2025
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