Supply Last Active 3y-5y

Supply Last Active 3y-5y Indicator

The Supply Last Active 3y-5y indicator measures the amount or percentage of circulating supply that has been inactive (not moved or transacted) for between three and five years. This metric provides insights into long-term holder behavior, market confidence, and potential lost or dormant supply.

Steps to Use the Supply Last Active 3y-5y Indicator

1. Understand the Concept:

• Long-Term Inactive Supply: Represents the portion of the circulating supply that has not been active for three to five years.

• Relevance: Highlights trends in long-term holding behavior, market confidence, and the impact of dormant supply on scarcity.

2. Interpret the Supply Last Active 3y-5y Indicator:

• High Percentage: Indicates strong long-term holding or lost coins, reducing effective circulating supply and increasing scarcity.

• Low Percentage: Suggests a greater portion of the supply is active in the market, reflecting higher turnover or recent engagement.

• Trends Over Time: Analyze changes to understand the balance between long-term holding and market participation.

3. Analyze Historical Patterns:

• Bull Markets: Long-term holders may realize profits, reducing the 3y-5y supply percentage as these coins re-enter circulation.

• Bear Markets: This metric often increases as coins remain dormant, reflecting accumulation and long-term confidence.

• Network Maturity: Older networks tend to show higher percentages of supply in the 3y-5y range as more coins reach this age threshold.

4. Make Decisions:

• During High Percentages: Evaluate the potential for reduced sell pressure and increased market stability or scarcity.

• During Low Percentages: Monitor for heightened market activity and redistribution by long-term holders.

• Validate Market Trends: Use this metric in combination with other indicators to confirm market sentiment and activity levels.

Tips:

• Combine with Other Metrics: Pair this indicator with metrics like realized cap, active supply, and long-term holder supply for a comprehensive analysis.

• Monitor Historical Patterns: Pay attention to increases or decreases in the 3y-5y range during similar market phases to identify trends.

• Use Historical Comparisons: Compare current levels with past data to assess market confidence and potential turning points.

• Contextualize with Market Events: Consider macroeconomic trends or major announcements influencing activity.

How to Use the Indicator Effectively

• Assess Long-Term Trends: Use high levels of 3y-5y inactivity to gauge long-term holder behavior and market sentiment.

• Identify Market Phases: Monitor changes in this metric to detect accumulation, distribution, or stabilization phases.

• Support Investment Strategies: Incorporate insights from this indicator into long-term portfolio management and valuation models.

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