Supply Last Active >10y

Tutorial: Supply Last Active > 10y Indicator

The Supply Last Active > 10y indicator measures the amount or percentage of circulating supply that has remained inactive (not moved or transacted) for more than 10 years. This metric provides insights into the behavior of long-term holders, potential lost coins, and the dynamics of inactive supply.

Steps to Use the Supply Last Active > 10y Indicator

1. Understand the Concept:

• Long-Term Inactive Supply: Represents the portion of the circulating supply that has not been active for over 10 years.

• Relevance: Indicates coins that are likely lost, forgotten, or held as deep long-term investments.

2. Interpret the Supply Last Active > 10y Indicator:

• High Percentage: Suggests a significant portion of the supply is inactive, potentially increasing scarcity and reducing sell pressure.

• Low Percentage: Indicates a smaller proportion of the supply is inactive, reflecting more recent activity or availability.

• Trends Over Time: Increasing long-term inactivity may indicate growing trust in the asset or highlight the accumulation of lost coins.

3. Analyze Historical Patterns:

• Bull Markets: Inactive supply percentages may stabilize or slightly decrease as long-term holders become active during price rallies.

• Bear Markets: Long-term inactivity often increases as coins remain untouched during periods of reduced market interest.

• Network Maturity: Higher percentages of >10y inactive supply often correlate with older, more established networks.

4. Make Decisions:

• During High Inactive Supply Periods: Evaluate the impact on effective circulating supply and potential scarcity effects.

• During Low Inactive Supply Periods: Consider the implications of increased market activity and potential liquidity.

• Validate Scarcity Trends: Use changes in long-term inactive supply to confirm broader market dynamics and scarcity models.

Tips:

• Combine with Active Supply Metrics: Use alongside active supply indicators to distinguish between available and inactive coins.

• Monitor Network Maturity: Increasing long-term inactivity often reflects the age and stability of the network.

• Use Historical Comparisons: Compare current inactivity levels with historical data to identify patterns and their implications.

• Contextualize with Market Conditions: Account for external events that may influence long-term holder behavior or coin accessibility.

How to Use the Indicator Effectively

• Assess Scarcity: Use long-term inactivity levels to evaluate the effective scarcity of the cryptocurrency.

• Identify Lost Supply Trends: Monitor increasing inactivity percentages as an indicator of lost or inaccessible coins.

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

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