Stock To Flow ratio

    Definition

    The Stock To Flow (S2F) ratio is a vital indicator provided by Santiment. Defined in the simplest terms, it's a measure of the scarcity or abundance of a specific asset. The stock-to-flow ratio is fundamentally a relationship between the total supply of an asset (the stock) and its production rate (the flow). We measure the stock-to-flow ratio for a given asset as the ratio between the Total Circulation of the asset and the daily minted coins multiplied by days in one year.

    The 'stock' aspect relates to the existing supply of the asset in circulation, while the 'flow' portion refers to the newly produced assets, usually measured annually.

    Stock to Flow Source: https://app.santiment.net/charts/stock-to-flow-ratio-btc-22307

    Applying the Stock to Flow Ratio to Trading

    In the trading world, how does the stock-to-flow ratio come into play? A high S2F ratio implies scarcity, meaning there's less production compared to the existing supply. This scarcity could signify a potential price increase due to the limited new supply making its way to the market. On the opposite end, a low stock-to-flow ratio indicates a larger new supply but a smaller demand, possibly leading to a depreciation in the asset's value.

    Making Informed Trading Decisions with the S2F Ratio

    As a trader, a high stock-to-flow ratio could be viewed as a buying signal, as the high scarcity could mean potential price appreciation. However, a low S2F might be a selling cue to prevent potential losses from the predicted oversupply.

    However, the stock-to-flow ratio shouldn't be the only tool you use when deciding to buy or sell. It should be used alongside other indicators and market analysis methods. Remember to assess overall market sentiment, global economic trends, and particular news or events that could affect price changes of your chosen asset.

    In essence, the stock-to-flow should be one tool in a collection used to formulate a comprehensive and robust trading strategy.


    Access

    Stock To Flow ratio metric is available only in Custom plans.

    Restricted Access.


    Timebound

    Timebound Metrics available


    Measuring Unit

    Token/Coin amount


    Data Type

    Timeseries Data


    Frequency

    Daily Intervals


    Latency

    On-Chain Latency


    Available Assets

    Available for these assets

    Note: stock_to_flow metric is available only for assets that mint new coins on a regular basis.


    SanAPI

    Available under the stock_to_flow name.

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    {
      getMetric(metric: "stock_to_flow") {
        timeseriesData(
          slug: "bitcoin"
          from: "2020-01-01T00:00:00Z"
          to: "2020-01-07T00:00:00Z"
          interval: "1d"
        ) {
          datetime
          value
        }
      }
    }

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