Supply Illiquidity Metrics

Supply Illiquidity Metrics assess how much of a cryptocurrency's total supply is effectively locked or held by entities that are unlikely to sell in the near term. This includes assets in cold storage, lost wallets, and long-term staking contracts.

As the percentage of illiquid supply increases, the remaining liquid supply becomes more sensitive to shifts in demand, which can lead to rapid price appreciation. Understanding this metric helps investors distinguish between the total supply and the actual float available for trading.

It is crucial for fundamental analysis, especially for assets with deflationary tokenomics. Illiquidity is a key driver of supply-side constraints.