Indicator Overview

The indicator is Active Supply Change. This metric measures the day-over-day change in the Active Supply, which is the total circulating supply adjusted for its liveliness (velocity). It focuses on the momentum of coins entering or leaving the active economy. Positive values indicate that the supply is becoming more active (high coin velocity), suggesting an overall influx of coins being moved. Negative values indicate the supply is becoming less active (low coin velocity), suggesting more coins are becoming dormant and being held.

How To Use

Active Supply Change is an excellent barometer for measuring market flow and volatility expansion/contraction. Sharp positive spikes signal a sudden and large transfer of coins into an active state, often occurring during periods of high distribution and profit-taking near market tops or during rapid rallies. Conversely, sustained periods of negative values indicate that coins are becoming dormant, with velocity decreasing, which is typical of market accumulation and low volatility phases that often precede a trend reversal or major move. Monitoring the transition from sustained negative values to a sharp positive surge can be an early confirmation of a strong market revival.