What is this?

Inactive Supply tracks the portion of Kaspa's circulating supply that has not been moved for extended time periods — specifically coins dormant for more than 1 year, 2 years, 3 years, and 5 years. Each threshold represents a progressively stronger signal of holder conviction, ranging from committed long-term investors to coins that may effectively be lost or permanently removed from circulation.

This metric serves as a proxy for the network's "effective supply reduction." Coins that haven't moved in years are unlikely to enter the market under normal conditions, which means the actual liquid supply available for trading is significantly less than the total circulating supply. Understanding this gap is crucial for assessing true scarcity and potential sell pressure.

Given that Kaspa launched in November 2021, the older inactive supply bands (3y+, 5y+) are still relatively small compared to mature networks like Bitcoin. However, the 1-year and 2-year bands are already substantial and growing, indicating that a meaningful portion of Kaspa's supply is transitioning into long-term cold storage as the network matures.

How to use this data

Higher inactive supply generally indicates less sell pressure on the market. When a large percentage of coins have been dormant for over a year, it means those holders have weathered significant price volatility without selling — a strong signal of conviction. This reduces the effective float available to buyers and sellers, meaning even modest demand increases can have outsized price effects.

A declining inactive supply metric is a warning signal. It means previously dormant coins are being reactivated — holders who haven't moved coins in over a year are now spending or selling them. This often precedes or accompanies major distribution events. Pay special attention to sudden drops in the 1-year inactive supply during price rallies, as this indicates long-term holders are taking profits.

When interpreting Kaspa's inactive supply, consider the distinction between intentional holding and lost coins. Some portion of long-dormant supply represents wallets whose keys have been lost, mining rewards sent to unrecoverable addresses, or test transactions from the network's early days. For Kaspa, given its young age, the lost coin percentage is likely lower than Bitcoin's estimated 15–20%, but it's still a factor — especially in the genesis-era UTXOs from late 2021.

How it's computed

Each UTXO's age is calculated from the DAA timestamp of its creating block to the current time. UTXOs exceeding each time threshold (1 year, 2 years, 3 years, 5 years) are summed to produce the inactive supply for that band. The thresholds are cumulative — the ">1y" figure includes all coins that are also in the ">2y", ">3y", and ">5y" categories.

The computation scans the entire UTXO set from our indexed database, filtering by age and summing the KAS value. This is performed at regular intervals to produce a time series showing how inactive supply evolves. Because it requires a full UTXO set scan, updates are batched rather than computed in real-time.

An important nuance: inactive supply can only increase through the passage of time (coins aging past a threshold) or decrease when holders spend previously dormant UTXOs. New coins from mining always start as "active" and must age into inactive categories. This asymmetry means that steady-state inactive supply growth is the default expectation for a healthy network — declines are the exception and warrant attention.