Coin Dormancy
An on-chain measure of how long a specific set of coins has remained unmoved since their last transaction, used to study holder behavior.
Coin dormancy measures how long a specific set of coins has remained unmoved on-chain since their last transaction — coins that move after sitting dormant for years contribute a very different signal than coins that move again within days.
Dormancy-based metrics are commonly used to study aggregate long-term holder behavior, since a large volume of very old, previously dormant coins suddenly moving is commonly read as a potentially significant event, distinct from the routine movement of recently-acquired coins. See Kaavon's "HODL Wave" glossary definition for a related visualization built on similar underlying data.
Examples
- A large volume of very old, previously dormant coins suddenly moving on-chain is commonly read as a potentially significant signal, distinct from routine recent-coin movement.
- Coin dormancy and HODL waves are both built from the same underlying data about how long coins have sat unmoved since their last transaction.