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Supply Last Active 5+ Years

Updated: Apr 11, 2023

Definition:

Percentage of the circulating supply that has remained untouched for at least five years.

Supply Last Active 5+ Years (SLA 5Y) can indicate the activity level of long-term holders. Commonly referred to as strong hands, they’re investors who hold assets for a significant amount of time.


In the photo below, you can see the SLA 5Y since 2010. One can note that the strong hands, on average, have been increasing their exposure to Bitcoin since it's inception.



What to watch for:


Liquidity: Understanding the proportion of supply that has not been traded in 5+ years can provide insight into the overall liquidity of an asset, as it indicates the amount of supply that is not readily available for trading. An increase in the proportion of supply that is not actively traded, coupled with high demand, can lead to upward pressure on the price, as the limited available supply may not be able to satisfy the demand.


Long term trend: The proportion of Bitcoin's circulating supply that has remained untouched for at least five years has displayed an upward trend since its creation, with some fluctuations such as periods of flatness and slight decreases, but overall the trend has been upward.


This upward trend serves as an indication of the level of conviction among holders in the long-term potential of the cryptocurrency. This group of holders, who do not readily sell during market downturns or at the peak of market rallies, demonstrate a strong belief in Bitcoin's future prospects.



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