Hodler Accumulation

Definition ∞ Hodler accumulation describes the process where individuals who hold digital assets for extended periods, known as “hodlers,” increase their holdings over time. This behavior often occurs during periods of market downturn or consolidation, as these long-term holders view price dips as opportunities to acquire more assets at a lower cost. It signifies a belief in the asset’s future appreciation.
Context ∞ Hodler accumulation is frequently discussed as a metric to gauge the conviction of long-term participants in the digital asset space. Analysts monitor on-chain data to observe whether these persistent holders are adding to their positions, which can indicate underlying strength or potential future price recovery. Understanding this behavior provides insight into market psychology and the supply dynamics influenced by a significant segment of asset owners.