Definition ∞ Holder supply growth measures the increase in the number of unique addresses or entities holding a specific cryptocurrency over time. This metric tracks the expansion of the investor base for a digital asset, indicating broader adoption and distribution among participants who choose to retain their holdings rather than immediately sell. A consistent upward trend in holder supply suggests increasing network participation and long-term conviction, contributing to market stability. It is a fundamental on-chain indicator of asset accumulation.
Context ∞ Analysts often cite holder supply growth as a positive long-term indicator for a digital asset’s health and potential for future price appreciation. News reports may highlight this metric to demonstrate growing interest and network effect for various cryptocurrencies. Sustained growth in holder numbers typically reflects increasing confidence in an asset’s utility and value proposition.
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