The Kaspa Short-Term vs. Long-Term Supply (% of the Circulating Supply) chart shows the split between short-term and long-term coin holders. Someone is considered a short-term holder when they have held the coin for less than 155 days, while a long-term holder is described as someone who has held the coin for more than 155 days. The percentage of short-term holders and long-term holders always adds up to 100% on any given day. 

Why is it Important? 

As a general principle, the longer a coin remains untouched in a wallet, the less likely it is to be sold based on impulsive decisions. Research has shown that once a coin reaches approximately 139 days of age, the likelihood of it being spent drops significantly.

Around this timeframe, the behavior of the holder tends to shift, indicating a transition into the so-called "smart money" category. There's a buffer zone of about ±20 days on either side of this threshold, reflecting the gradual shift from short-term to long-term holding status.

How to Read the Chart

The STH vs LTH Supply Chart consists of the following components:

1. Short-Term Holders (STH) are shown across the x-axis and are represented in brown. At any point in time, the percentage of STH + LTH is equal to 100%

2. Long-Term Holders (LTH) are shown across the x-axis and are represented in Kaspa green color. . 

3. Kaspa Market Price (in USD) is shown in USD on the y-axis. 

Want to Learn More?

Read through the Bull From the Sea (@Bullfromsea)’s X thread detailing the results from the study of short-term vs. long-term BTC holders. The data used in the study is available on ChainExposed.  

Moreover, we recommend the following article by Glassnode here.