Low dormancy levels in cryptocurrency markets indicate that a significant portion of the circulating supply has recently moved or been transacted. This suggests increased activity among holders, which can be a sign of either profit-taking or redistribution. Low dormancy often contrasts with periods where coins remain stationary in wallets for extended periods.
Context
Crypto news reports often reference low dormancy levels to analyze market liquidity and investor behavior. While sometimes signaling increased selling pressure, it can also indicate renewed interest and allocation by active traders. Understanding dormancy helps contextualize current market activity and anticipate potential price volatility.
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