Dormancy refers to the state of digital assets that have remained inactive in a wallet for an extended period. This metric is often used to gauge the long-term holding behavior of investors and the circulating supply dynamics of a cryptocurrency. High dormancy can suggest a strong conviction among holders, while low dormancy might indicate increased trading activity or active participation in network functions.
Context
The analysis of asset dormancy is a key indicator for understanding market sentiment and potential future price movements, with researchers often tracking the age of coins moved on-chain. Discussions frequently involve differentiating between strategic long-term holding and assets lost due to forgotten private keys. Monitoring changes in dormancy can provide signals about investor behavior and the overall health of a blockchain ecosystem.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
