Velocity refers to the measure of the work a Scrum Team completes during a single Sprint. This metric is typically represented by the sum of story points or a count of Product Backlog items that are completed. By averaging this metric over time, the Scrum Team can gauge their output and use this information to Forecast future Sprints based on past performance.
The main purpose of tracking Velocity is to provide the Scrum Team with a clearer understanding of their capacity for work. By doing so, it aids in planning and setting realistic expectations for upcoming Sprints. It’s important to note that Velocity is a tool for internal use within the team to help with adaptive planning, not a measure of productivity or worth in isolation.