Spent Volume > 10y

Tutorial: Spent Volume > 10 Years Indicator

The Spent Volume > 10 Years metric is an on-chain indicator that tracks the total volume spent in transactions involving coins that have been dormant for more than 10 years. This metric provides insights into the behavior of extremely long-term holders, often early adopters, and highlights strategic movements of coins that have remained untouched through multiple market cycles. It is particularly valuable for understanding rare movements, profit-taking, and the activation of legacy wallets.

Steps to Use the Spent Volume > 10 Years Metric

1. Understand the Concept

• Spent Volume > 10 Years: Measures the total volume of coins spent after being dormant for over a decade.

• Relevance: Highlights significant activity from long-dormant coins, offering insights into early adopter behavior, strategic selling, or potential reactivation of legacy holdings.

2. Interpret the Spent Volume > 10 Years Metric

• High Volume: Indicates significant movement of long-dormant coins, often reflecting profit-taking by early adopters or reactivation of old wallets during bull markets.

• Low Volume: Suggests limited activity from these coins, reflecting confidence in holding or the inactivity of legacy wallets.

• Spikes in Volume: May signal reactions to major price levels, significant market events, or shifts in sentiment among long-term holders.

3. Analyze Historical Patterns

• Market Tops: Spikes in this metric often align with profit-taking by early adopters during bull market peaks.

• Market Stability: Low activity during stable periods reflects the confidence of long-term holders and reduced selling pressure.

• Rare Events: Spent Volume > 10 Years often highlights unique market occurrences, such as the reactivation of wallets thought to be lost or unused.

4. Make Decisions

• During Bull Markets: Monitor high activity in this metric as it often reflects profit-taking by very long-term holders, signaling potential market tops or corrections.

• During Bear Markets: Low activity during downturns indicates that extremely long-term holders are not capitulating, suggesting confidence in future market recovery.

• During Stable Markets: Minimal activity reflects reduced selling pressure and strong market fundamentals, supporting long-term planning.

Tips:

• Combine with Other Metrics:

Use Spent Volume > 10 Years alongside metrics like Realized Cap for a deeper understanding of long-term holder activity.

• Monitor Rare Movements:

Spikes in this metric often highlight significant events, such as the activation of old wallets or strategic selling by long-term holders.

• Track Profit-Taking Behavior:

High volume during bull markets reflects profit-taking by early adopters and legacy holders, which often aligns with market peaks.

• Analyze Historical Trends:

Compare current activity levels with historical patterns during similar market cycles to identify recurring behaviors and align strategies with long-term trends.

How to Use the Indicator Effectively

• During Market Tops: High spent volume > 10 years reflects profit-taking by early adopters or activation of legacy holdings, often signaling market peaks. Use these signals to assess risk and prepare for potential corrections.

• During Market Bottoms: Low activity indicates confidence among very long-term holders, suggesting reduced selling pressure and favorable conditions for market recovery. These periods often align with strategic accumulation opportunities.

• During Consolidation Phases: Minimal activity reflects a holding pattern among extremely long-term holders, indicating market stability and providing a foundation for long-term positioning.

Created By: This indicator is a widely recognized tool in blockchain analytics.