Definition ∞ A Holder Conviction Metric measures the strength of long-term belief among digital asset owners, indicating their propensity to retain assets despite market fluctuations. This metric often assesses the behavior of addresses that have held coins for extended periods, observing their accumulation or distribution patterns. A high conviction suggests that holders are not selling, reflecting confidence in the asset’s future value. It provides insight into the underlying sentiment of a cryptocurrency’s dedicated user base.
Context ∞ Investor accumulation trends and holder conviction metrics are regularly cited in on-chain analysis reports to assess market strength and potential future price movements. News often references these metrics to explain periods of market resilience or to predict shifts in supply dynamics. A sustained increase in holder conviction can signal a healthy long-term outlook for a digital asset.
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