This chart shows holder (HODLer) behavior patterns by examining the relationship between the age of unspent coins (UTXOs) and KAS’ price action. 

An Unspent Transaction Output, or UTXO, is an accounting structure used in Bitcoin and Kaspa to track when a unit of cryptocurrency was last moved, illustrating shifts in ownership over time. 

The behavior patterns are displayed as HODL waves, categorized by color. Each colored wave represents the relative fraction of all existing KAS last transacted within the time window indicated in the legend. For example, the bottom, warmer colors (e.g., reds, oranges) represent recent KAS transactions. In contrast, the top, cooler colors (greens, blues) represent the amount of KAS that hasn’t transacted in a long time. It’s important to note that the sum of all bands always totals 100% of the circulating supply. Therefore, the chart’s Y-axis goes up to 100% showing the age breakdown of all KAS on a given date.

The age of each colored wave is the following: 

• 24hr (Dark Red) 

• 1 day - 1 week ( Red) 

• 1 week - 1 month (Dark Orange)

• 1 month - 3 months (Orange)

• 3 months - 6 months (Light Orange)

• 6 months - 12 months (Tan Orange)

• 1 year - 2 years (Tan Green)

• 2 years - 3 years (Light Green)

• 3 years - 5 years (Green)

• 5 years - 7 years (Turquoise) 

• 7 years - 10 years (Navy Blue) 

• +10 years (Purple)

Why is it Important?

The chart illustrates the various actions taken by different market participants with their KAS. For example, a wave increase of lower-age coins held indicates that long-term KAS holders are being sold (and are likely being purchased by mostly new participants). Historically, this occurs during sharp price increases, as new participants enter the market. More importantly, if you notice a sharp increase in red waves, this is likely a sign of an incoming bear market after a great top out; in other words, signaling FOMO. On the other hand, a wave decrease of lower-age coins and new-age coins held signals a phase of accumulation. 

Generally, waves and shifts in the bands reveal how coins flow from short-term to long-term holding categories as holders accumulate or spend KAS—in other words, pinpointing accumulation vs distribution phases. 

How to Read the Chart:

The chart components include:

1. The Market Price of KAS (The White Line): This tracks the daily price of KAS in USD, plotted on the right-hand y-axis. This allows you to compare price action with changes in holding behavior over time. 

2. The Percentage of the Total Circulating KAS Supply (The Colored Bands): The Percentage of the Total Circulating KAS Supply is grouped by how long each coin has remained unmoved since its last transaction.

Want to Learn More? 

The Bitcoin financial services firm, Unchained Capital, first introduced the HODL Waves Chart in 2018, as the first entry of their Bitcoin Data Science Series, specifically in “Bitcoin Data Science (Pt. 1): HODL Waves. 

Also, to learn more about token holder sentiment through the distribution of long-term and short-term holders, check out our other HODL Wave charts: Realized Cap HODL Wave, 6+ Month HODL Wave, 3+ Month HODL Wave, 2+ Month HODL Wave, and 1+ Year HODL Wave.