The Kaspa cryptocurrency has recently experienced notable volatility, dropping below $0.08. Nevertheless, nearly 55% of all tokens remain inactive, reflecting growing confidence among long-term holders.
Long-Term Kaspa Holders
According to data, nearly 55% of the total supply of Kaspa tokens has not moved for over six months. This figure marks an all-time high, indicating that holders are not chasing quick profits. This trend suggests a strong conviction in the project's long-term prospects despite price declines.
Impact on Market Liquidity
The inactivity of a significant portion of the supply leads to a decrease in market liquidity. Currently, this may not have much of an impact on trading activity; however, if interest in Kaspa increases, the limited supply may result in a squeeze, potentially driving prices up.
Kaspa's Fundamental Metrics
Kaspa's fundamental metrics, including its fast blockDAG architecture and growing ecosystem, draw attention as a serious player in the Proof-of-Work space. Many early adopters and miners express confidence in the long-term potential of this cryptocurrency.
Despite short-term price fluctuations, the activity of Kaspa token holders indicates rising confidence in the project. Should interest in the cryptocurrency rise while half the supply remains frozen, significant price increases could be anticipated.
