UTXO Age Bands

UTXO Age Bands is a set of all active supply that were last moved within a specified age band.

Definition

UTXO Age Bands is a set of all active supplies that were last moved within a specified age band. UTXO Age Bands' value that fit according to the age range represents the total value of UTXOs in existence, that were last moved within the denoted time period in native value.

\text{UTXO Age Bands} = {\sum_{u \in utxos} \text{value}_u * \mathbb{I}(a_i \leq \text{lifespan}_u < b_i)}

\text{UTXO Age Bands (USD)} =\text{price}_{current}*{\sum_{u \in utxos} \text{value}_u * \mathbb{I}(a_i \leq \text{lifespan}_u < b_i)}

\text{UTXO Age Bands (%)} =\frac{\sum_{u \in utxos} \text{value}_u * \mathbb{I}(a_i \leq \text{lifespan}_u < b_i)}{\sum_{u \in utxos} \text{value}_{u}}*100

[a_i, bi) \in [[0, 1d), [1d, 1w), [1w, 1m), [1m, 3m), [3m, 6m), [6m, 12m), [12m, 18m), [18m, 24m)\\ [2y, 3y), [3y, 5y), [5y, 7y), [7y, 10y), [10y, \inf)

Modified Metrics

Interpretation

This indicator summarizes the behaviors of long-term and short-term holders along with the price actions. As price rises/falls, it is advised to watch out for shifting distribution in the UTXO Age Bands to further gain insights on the market through analyzing its participants. It also provides valuable tools for analyzing static macro views of holders' age distribution in the network and viewing the macro shift in influence difference between Long-held UTXOs and Short-held UTXOs.

Keep in mind that each UTXO Age band is connected to each other. For example, UTXOs that were located in 6m~12m UTXO Age band six months before shifts to 12m~18m UTXO Age band now under the assumption that it has not moved.

By value itself

High value(Native Value) & Dominance(%) in certain UTXO Age Band - Age Band's type of investor has more representative

For example, if the UTXO Age Band of 3 years to 5 years have the greatest UTXO Age Band Value,

1) It is possible to interpret it as investors that held 3 to 5 years have more potential of influencing the market.

2) The price range bought at the time could indicate an important price level in the market.

Low value(Native Value) & Dominance(%) in certain UTXO Age Band - Less influence & type of investor has less representative

For example, if the UTXO Age Band of 3 years to 5 years have the least UTXO Age Band Value,

1) It is possible to interpret it as investors that held 3 to 5 years have less potential of influencing the market than other UTXO Age Band.

2) The price range bought at the time could indicate an important price level but could fall behind compared to other UTXO Age Bands.

By examining trend

Longer UTXO Aged Bands Gaining Dominance or Larger in Depth - More UTXOs are being held for the Long term = More HODLing

As comparatively newer coins are being held or so to speak HODLed without any movement in the network, it moves on to the next UTXO Age Bands implying that more coins are being held in the long term.

Younger UTXO Aged Bands Gaining Dominance or Larger in Depth - Old Coins Being Renewed to Younger Coins = Old Coins Being Circulated

As older coins are being transferred in the network, they are destroyed and become new UTXO making the younger UTXO Age Bands increase in value which results in young UTXO Age Bands growing in size.

Note

As the circulating supply continues, the total native value of UTXO Age Bands should increase.
Identifying the characteristics of UTXOs identical to the wallet/investors might be misleading. ex. One wallet might hold meaningful amounts of both old and young UTXOs in a single wallet.

Link to Our Data

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Last updated 2 years ago