Off-Exchange Supply

Definition ∞ Off-exchange supply refers to the total amount of a cryptocurrency held outside of centralized trading platforms. This metric quantifies digital assets stored in self-custodied wallets, decentralized finance (DeFi) protocols, or other non-exchange addresses. A growing off-exchange supply often indicates a long-term holding sentiment among investors, as assets are moved away from immediate trading venues. It can also suggest increased participation in decentralized applications or staking activities.
Context ∞ Crypto news frequently analyzes off-exchange supply data as a key indicator of market sentiment and potential price stability. A significant increase in off-exchange holdings can signal reduced selling pressure and a preference for long-term accumulation. Conversely, a decrease might precede increased selling activity or a shift towards short-term trading, providing valuable insights into market dynamics.