Supply Velocity
supply_velocityAssets with lower inflation perform better than assets with higher inflation.
How the factor is constructed
Supply Velocity measures changes in token supply dynamics, capturing inflationary and deflationary pressures across crypto assets and reflecting the fundamental relationship between token supply and asset performance. It is inspired by the observation that supply inflation can lead to underperformance as crypto matures into a more fundamental-driven market.
The universe consists of the most liquid and actively traded assets, identified on a rolling basis and survivorship-bias free. Positions are scaled by the inverse of rolling volatility; the factor is available point-in-time with hourly updates.
Supply Velocity
| Period | Return | BTC | Ann. vol | Sharpe | Max DD |
|---|---|---|---|---|---|
| 1 month | +4.77% | +24.10% | — | — | -2.4% |
| 3 months | +11.44% | +17.86% | — | — | -2.4% |
| Year to date | +11.90% | -11.92% | — | — | -7.6% |
| 1 year | +39.92% | -32.28% | 14% | 2.50 | -7.6% |
| Since inception (CAGR) | +20.62% | +42.73% | 15.5% | 1.28 | -23.2% |
Putting Supply Velocity to work
There are two ways to take Supply Velocity from factsheet to live book: overlay it as a sleeve on the portfolio you already run, or use it as a building block in a standalone multi-factor portfolio. Both paths are documented in short, runnable notebooks that work out of the box against the public demo key — no signup required.
Add Supply Velocity to an existing portfolio
Size a Supply Velocity sleeve alongside your current book and quantify what it changes: correlation to your existing returns, then CAGR, volatility, Sharpe and maximum drawdown before and after the blend. One parameterized notebook runs for any factor — swap in Supply Velocity, then bring your own daily returns as a CSV or start from the built-in demo book.
Build a portfolio from scratch
Construct a market-neutral multi-factor portfolio from the ground up: ensemble the raw signals, apply inverse-volatility weights with a per-asset cap, and backtest net of transaction costs. The default factor list reconstructs the 7 Factor Composite; add Supply Velocity to the factors list to measure its marginal contribution to the blend.
New to the platform? The five-step guide covers data access, a proof of concept, and licensing.