Definition ∞ Coin Age Distribution represents a blockchain analytic metric that categorizes the circulating supply of a digital asset based on how long each unit has remained unspent in its current wallet. This distribution is often visualized in age bands, showing the proportion of coins held for short, medium, or long durations. It provides insight into the holding patterns and dormancy of an asset’s supply. This data helps assess the conviction of holders and potential selling pressure.
Context ∞ In crypto news, Coin Age Distribution is a valuable indicator for analyzing market sentiment and anticipating significant price movements. An increase in older coins moving suggests potential profit-taking or reallocation by long-term holders, often preceding market volatility. Conversely, a stable or increasing proportion of older coins indicates strong holder conviction and reduced selling inclination.
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