Network Conviction

Definition ∞ Network Conviction refers to the collective belief and confidence that participants hold in the long-term viability and security of a particular blockchain network or digital asset. This conviction is demonstrated through actions such as holding assets for extended periods, actively participating in network governance, or contributing to development. High network conviction suggests a strong community and reduced likelihood of mass selling during market downturns. It reflects fundamental belief in the system.
Context ∞ For decentralized digital assets, network conviction is a critical metric often highlighted in crypto news, as it indicates the strength of a project’s community and its resilience against market volatility. A strong network conviction can help an asset withstand selling pressure and attract new participants, reinforcing its long-term growth prospects. Conversely, a decline in network conviction can signal fundamental weaknesses or loss of trust, impacting the asset’s perceived value and future trajectory.