Supply Distribution Shift

Definition ∞ A Supply Distribution Shift denotes a change in how a digital asset’s total circulating supply is held across various addresses or entities over a period. This alteration can indicate changes in ownership concentration, investor sentiment, or overall market dynamics. It reflects the movement of assets among different holder categories.
Context ∞ On-chain metrics frequently analyze supply distribution shifts to understand whether assets are moving from smaller retail holders to larger institutional entities, or vice versa. These shifts provide valuable insights into market structure, potential accumulation or divestment trends, and the long-term outlook of an asset.