Dormant supply refers to the quantity of a specific digital asset that has remained unspent or unmoved from its originating address for a prolonged, predefined period. This metric provides insight into the long-term holding behavior of asset owners, often indicating conviction or passive accumulation. Analyzing dormant supply can help gauge potential selling pressure or the likelihood of future market activity. A significant increase in dormant supply may suggest a reduction in circulating supply available for immediate trade.
Context
Discussions around dormant supply frequently focus on its implications for price discovery and network health, with particular attention paid to older, untouched holdings of major cryptocurrencies. Analysts often debate whether this inactivity signifies a lack of interest or a strategic long-term holding strategy by early adopters and large stakeholders. The potential for a large volume of dormant supply to re-enter the market is a constant consideration when assessing market dynamics and potential volatility.
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.
