Definition ∞ Wallet age distribution is an on-chain metric that categorizes cryptocurrency wallets based on how long their held assets have remained unmoved. This analysis segments the total supply into different age bands, such as one-day, one-week, one-month, or one-year-plus holdings. It provides a visual representation of the holding patterns across the entire network.
Context ∞ Wallet age distribution offers critical insights into the overall investor sentiment and potential selling pressure within a digital asset’s market. An increase in older age bands suggests strong holder conviction and reduced circulating supply. This metric is a fundamental tool for understanding market liquidity and assessing the long-term investment profile of a cryptocurrency.