Kaspa’s Inactive Supply Soars, Signaling Strong Holder Sentiment
In an intriguing turn of events for Kaspa (KAS), over two-thirds of its circulating supply has remained untouched for more than three months, setting a new benchmark in long-term holding across the cryptocurrency market. This news comes courtesy of an insightful update from Kaspa Report, which highlighted that an impressive 67.17% of the KAS cryptocurrency is presently inactive, fueling discussions about its role as a potential digital store of value.
Network Activity Thrives Amidst Growing Inactivity
Despite the increasing number of dormant coins, Kaspa’s network has shown no signs of slowing down. According to Kaspa Report, the daily transaction volumes have remained consistently high or have slightly increased over the past month. This suggests that while some users are holding onto their KAS for the long term, others continue to engage actively with the blockchain, using KAS for both transactions and network operations.
Trends in Inactive Supply Since January
The trend of increasing inactive supply started in late January 2025, as revealed by Kaspa’s supply chart. Initially hovering around 60%, the percentage of coins not moving on the blockchain has grown steadily. A slight dip in mid-March did little to halt the overall upward trend, with the figure reaching 67.17% by April 20. This indicates a notable shift towards holding KAS rather than engaging in frequent trades or sales.
Balanced Dynamics: Transactions and Holder Behavior
The data points to a balanced role for Kaspa, functioning both as a store of value and a medium for exchange. Kaspa Report has observed that despite the high percentage of inactive supply, the network’s transactional activity has remained strong. This resilience in transaction volumes in the face of growing holder sentiments suggests that Kaspa users are utilizing the cryptocurrency for diverse purposes:
- Long-term Investment: More holders are treating KAS as a long-term investment rather than a short-term trade asset.
- Regular Transactions: The continued use of KAS in daily transactions counters the narrative that a higher savings rate would decrease economic activity on the blockchain.
This dual behavior of saving and spending could indicate Kaspa’s evolution into a more versatile cryptocurrency, adept at serving both as a financial repository and a functional currency in the digital economy.
Market Implications
This trend in supply behavior might hint at an impending supply shock if the dormant supply starts moving in bulk, potentially affecting liquidity and market dynamics. However, no immediate signs of network stagnation are evident; instead, Kaspa seems to be adapting to a new equilibrium where both long-term holding and active trading coexist.
As the situation unfolds, users are encouraged to stay updated through channels like X (Twitter), CoinMarketCap, and Binance Square for the latest developments and analysis in the crypto market.
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The post Kaspa Inactive Supply Hits All-Time High – Is a Supply Shock Imminent? appeared first on CaptainAltcoin.
Source: captainaltcoin.com