Holder Accumulation Score

Definition ∞ The Holder Accumulation Score is a metric that quantifies the rate at which long-term holders of a digital asset are increasing their positions. It assesses the collective buying behavior of addresses that have historically held assets for extended periods. A high score indicates strong conviction among established participants, suggesting reduced selling pressure and potential future price appreciation. This score reflects underlying demand from dedicated investors.
Context ∞ Crypto news frequently cites the Holder Accumulation Score as an on-chain indicator for market strength and investor sentiment. The key discussion involves its utility in identifying periods of strong underlying demand, even during market volatility. A critical future development focuses on refining this metric to differentiate between various holder cohorts, providing more nuanced insights into market dynamics.