Retention Cohort

Definition ∞ A Retention Cohort is a group of users or investors who began interacting with a specific cryptocurrency platform or digital asset within a defined timeframe. This analytical grouping allows for the study of user behavior over time, specifically how consistently they remain active or continue holding assets. By tracking the engagement and longevity of different cohorts, projects can assess the effectiveness of their strategies, identify trends in user loyalty, and understand factors influencing long-term participation. This metric is crucial for evaluating the health and sustainability of a digital asset ecosystem.
Context ∞ Analytics firms and project teams in the digital asset space increasingly use retention cohort analysis to understand user stickiness and ecosystem growth. News articles sometimes reference these metrics when discussing the adoption rates and long-term viability of various decentralized applications or protocols. The challenge lies in accurately measuring true retention amidst fluctuating market conditions and diverse user motivations.