Strong Holder Hands

Definition ∞ Strong holder hands refers to a segment of investors who exhibit high conviction and a low propensity to sell their digital assets, even during periods of market volatility or price declines. These holders are typically long-term oriented, viewing their assets as a store of value or a strategic investment. Their sustained retention of assets reduces the circulating supply available for trade. This behavior indicates underlying confidence in the asset’s future prospects.
Context ∞ The concept of strong holder hands is a frequent topic in cryptocurrency news and on-chain analysis, often used to gauge market maturity and investor sentiment. A growing proportion of supply held by these participants can signal a resilient market foundation. This metric provides valuable context for understanding supply dynamics and potential price stability.