Definition ∞ An accumulation metric is a quantifiable measure indicating the persistent acquisition of a digital asset by market participants. These metrics track on-chain activity, such as wallet balance changes or transaction volumes, to identify periods of net buying. They provide insight into investor sentiment and potential future price movements, suggesting a belief in the asset’s long-term value.
Context ∞ Understanding accumulation metrics is vital for assessing market health and identifying potential shifts from bearish to bullish sentiment. News often references these metrics to support analyses of a cryptocurrency’s underlying demand. Watching for sustained increases in accumulation can signal growing confidence among asset holders.