Plain-English definition
Dormancy measures how long coins have stayed still. Long-dormant coins waking up is a classic signal: a holder who has weathered years has a reason to move now.
It is one of the readings that is genuinely native to a public ledger. You cannot see a bank account go quiet for three years, but you can see an address do exactly that.
Why it matters
Dormancy matters because crypto markets can look precise while still being shallow, crowded, or poorly sourced. A useful read is not just the number. It is the number, the size behind it, the context around it, and the part it cannot explain.
Simple example
A simple Dormancy example is a reader comparing two venues with the same headline price but different depth. The deeper venue can absorb more capital before the trade, peg, or yield reading starts to move against the user.
How Bathymark uses this term
Bathymark uses Dormancy to translate open market data into live liquidity readings. When the term touches a live page, the reading links back to the relevant chain, protocol, stablecoin, DEX, perps, or Signal so the source remains checkable.
Common mistake
The common mistake is treating Dormancy as a complete signal by itself. Bathymark treats it as one instrument: useful when read beside liquidity, source, size, and what the number cannot prove.