Coin Age Bands

Definition ∞ Coin age bands categorize cryptocurrency holdings based on the duration since the coins last moved on the blockchain. These bands segment the total supply into various timeframes, such as 1-3 months, 6-12 months, or over 5 years. Analyzing these segments provides insight into investor behavior and market conviction. Longer dormancy periods within these bands often indicate a stronger holding sentiment among participants.
Context ∞ Crypto news frequently references coin age bands as an on-chain metric to assess market sentiment and potential supply dynamics. Reports may highlight a shift in coins from older to younger bands as a signal of increased selling activity or profit-taking. Conversely, a growing proportion of coins in older bands suggests accumulation and a reduction in available circulating supply, which can influence price predictions.