Definition ∞ Total supply locked represents the aggregate amount of a digital asset that is held in smart contracts or staking mechanisms. These assets are intentionally removed from liquid circulation for a specified period or purpose. It is a key metric for assessing network engagement.
Context ∞ This metric is crucial for understanding network security, user conviction, and potential supply pressure in cryptocurrency markets. A higher percentage of locked supply often indicates reduced selling pressure and increased utility within a protocol. Analysts frequently examine this data to gauge the health and long-term commitment to a digital asset ecosystem.
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