Long term holder distribution refers to the allocation of a cryptocurrency among investors who have held their assets for an extended duration. This metric analyzes the proportion of a digital asset’s total supply that is held by entities typically defined as long-term holders, often based on holding periods exceeding several months or a year. It provides insight into the conviction and accumulation trends of seasoned investors. A high and stable long-term holder distribution often suggests a strong underlying belief in the asset’s future value. Significant changes can indicate shifts in market structure or sentiment.
Context
Crypto news often examines long term holder distribution to assess the health and maturity of an asset’s market. A decreasing distribution might signal that long-term holders are selling, potentially leading to increased supply and downward price pressure. Conversely, an increasing distribution suggests accumulation by confident investors, which can be a bullish indicator. This metric helps differentiate between speculative trading and fundamental investor conviction.
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