Clear DefinitionsHODL Waves
1 min read
Pronunciation
[hodl wayvz]
Analogy
Like tracking the ages of wine bottles in a cellar to see which vintages are being opened and consumed.
Definition
An on‑chain metric that groups UTXOs by age (time since last spend) and visualizes the distribution as “waves,” indicating how long coins remain dormant before moving.
Key Points Intro
HODL Waves reveal holder behavior by showing the lifespan distribution of cryptocurrency holdings.
Key Points
Age bands: UTXOs segmented into time intervals (e.g., 1 day, 1 year).
Wave chart: Stacked area chart showing dormancy over time.
Market sentiment: Rising long‑term waves suggest accumulation.
Supply velocity: Measures how often coins change hands.
Example
A Bitcoin HODL Waves chart shows a growing percentage of coins held for over two years, signaling strong long‑term conviction.
Technical Deep Dive
Compute UTXO age by block height difference. Aggregate sums per age bucket daily. Plot with D3.js as stacked areas, normalizing total supply.
Caveat
Exchange cold wallets can skew waves; isolate known custodial addresses if possible.
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