Wallet Dormancy

Definition ∞ Wallet dormancy describes the condition of a cryptocurrency wallet that exhibits no outgoing or incoming transactions for an extended duration, indicating a period of inactivity. This state can result from various factors, including long-term holding strategies, loss of access due to forgotten keys, or the owner’s passing. Tracking wallet dormancy provides data points for market analysis and understanding investor behavior. It can also signify potential lost or inaccessible digital wealth.
Context ∞ News reports and market analyses frequently reference wallet dormancy to gauge long-term investor sentiment and supply dynamics within the cryptocurrency market. Significant shifts in dormant wallet activity, such as large movements of previously inactive funds, can sometimes precede or accompany major market price changes. The phenomenon also raises discussions about secure long-term storage solutions and strategies for digital asset inheritance.