Average Time Token is Held
As the name suggests, this indicator simply calculates the average holding period for a crypto-asset. This is calculated by averaging all addresses’ holding times for addresses before they transfer out (or sell) this crypto. This number is put in context relative to the amount of time that this crypto-asset has been around for.
This indicator is helpful to understand the time horizon of holders for this crypto-asset. A longer time horizon may point to greater long-term belief in the asset.
Average Time Token is Held for Bitcoin
In the example above we can see that Bitcoin is held on average for 3.1 years out of the 12 years it has existed for. This suggests that Bitcoin traders have a relatively long-term investment horizon.