CryptoQuant User Guide
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English
  • Why trust CryptoQuant data
  • Top 15 Preset Charts ⭐
    • Miner Selling
    • Whale Accumulation
    • Huge OTC deal
    • Buying/Selling Pressure
    • Market Trend
    • Market Sentiment
    • Whale Dumping
  • Intro to On-Chain
    • What is on-chain data?
    • Why Market Driven?
  • Background Knowledge
    • Why Entity Matters
    • What is UTxO?
  • Exchange Flows/Indicators
    • Glossary (Exchange Flows)
    • Exchange In/Outflow and Netflow
    • Exchange Reserve
    • Exchange to Exchange
    • Exchange Addresses Count
    • Exchange Transactions Count
    • Fund Flow Ratio
    • Exchange Supply Ratio
    • Exchange Inflow CDD
    • Exchange Inflow - Spent Output Age Bands
    • Exchange Inflow - Spent Output Value Bands
  • Miner Flows/Indicators
    • Glossary (Miner)
    • Miner Outflow
    • Miner to Exchange
    • Miner Supply Ratio
    • Miners' Position Index (MPI)
  • UTXO Data/Indicators
    • Glossary (UTxO)
    • Profit and Loss (UTxO)
    • Profit and Loss (Supply)
    • Coin Days Destroyed (CDD)
    • Binary CDD
    • Mean Coin Age (MCA)
    • Sum Coin Age (SCA)
    • Sum Coin Age Distribution (SCA Distribution)
    • Spent Output Profit Ratio (SOPR)
      • aSOPR (Adjusted SOPR)
      • STH-SOPR
      • LTH-SOPR
      • SOPR Ratio (LTH-SOPR/STH-SOPR)
    • Net Unrealized Profit/Loss (NUPL)
    • UTXO Bands (Age)
      • UTXO Age Bands
      • Realized Cap - UTXO Age Bands
      • Realized Price - UTXO Age Bands
      • UTXO Count - Age Bands
      • Spent Output Age Bands
    • UTXO Bands (Value)
      • UTXO Value Bands
      • Realized Cap - UTXO Value Bands USD
      • UTXO Count - Value Bands
      • Spent Output Value Bands
  • Market Data/Indicators
    • Glossary (Market)
    • Open Interest
    • Funding Rates
    • Estimated Leverage Ratio
    • Taker Buy Sell Volume/Ratio
    • Capitalization models
    • Realized Price
    • Exchange Whale Ratio
    • MVRV (Market Value to Realized Value) Ratio
  • Network Indicators
    • NVT Ratio
    • NVT Golden Cross
    • Puell Multiple
    • Stock to Flow Ratio
    • Stock to Flow Reversion
    • NVM Ratio
  • Stablecoin Exchange Flows/Indicators
    • Glossary (Stablecoin)
    • Stablecoin Network Data
    • Stablecoin Exchange In/Outflow & Netflow
    • Stablecoin Exchange Reserve
    • Stablecoin Exchange Addresses Count
    • Stablecoin Exchange Transactions Count
    • Stablecoins Ratio
    • Stablecoin Supply Ratio (SSR)
  • Fund data & Premium
    • Grayscale Bitcoin Trust (GBTC)
      • GBTC Digital Asset Holdings
      • GBTC Premium or Discount
  • Grayscale Ethereum Trust (ETHE)
    • ETHE Digital Asset Holdings
    • ETHE Premium or Discount
  • Coinbase Premium
  • Korea Premium Index
  • Bank Supply Ratio
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On this page
  • Definition: Binary CDD & Supply Adjusted CDD
  • Interpretation
  • How is Binary CDD Measured?
  • Straightforward User Guide

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  1. UTXO Data/Indicators

Binary CDD

Binary CDD is binary value and if Supply Adjusted Coin Days Destroyed (Supply-Adjusted CDD) is larger than average Supply-Adjusted CDD, Binary Coin Days points to '1' and points to '0'

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Last updated 1 year ago

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Definition: Binary CDD & Supply Adjusted CDD

Binary Coin Days Destroyed is binary value and if Supply Adjusted Coin Days Destroyed is larger than average Supply Adjusted Coin Days Destroyed, Binary Coin Days points to ‘1' and points to ‘0' if not. Let's look into the Binary Coin Days Destroyed (CDD) values:

  • shows 1: If measured Supply-Adjusted CDD is larger than the average Supply Adjusted CDD

  • shows 0: If measured Supply-Adjusted CDD is less than the average Supply Adjusted CDD

Interpretation

It shows whether long-term holders' movements are higher or lower than average CDD.

  • High density of value pointing ‘1': Long-term holders moved their coins for possible selling

  • Low density of value pointing '1' : Long-term holders are not moving their coins

How is Binary CDD Measured?

Binary Coin Days Destroyed (Binary CDD) provides a nuanced perspective by evaluating Supply Adjusted Coin Days Destroyed (Supply-Adjusted CDD) against the historical average. This measurement considers the spending behavior of long-term holders, particularly with older coins, and aims to accurately represent economic activity within a cryptocurrency network. By assessing the CDD indicator in relation to the long-term historical average, Binary CDD gives more weight to extended periods of coin holding, often associated with cold storage or long-term investment strategies. This approach helps identify significant relative movements in on-chain activity, offering insights into market strength and potential smart money actions. The binary assessment serves as a valuable tool for understanding long-term holder behavior, shedding light on shifts in market sentiment and providing a timely indication of potential trends based on historical data and moving averages. coins held.

Straightforward User Guide

Binary CDD serves as a valuable tool for understanding the patterns and long term holder spending behavior in the cryptocurrency market. Generally, when the market is bullish, LTHs tend to spend their older coins, taking advantage of the market strength and positive trend and resulting in higher-than-average destruction of coin days.

Conversely, during bearish trends, on-chain activity decreases, and off-chain exchange volumes become more dominant. In such periods, long-term investors with old coins, and savvy holders often accumulate inexpensive coins, withdrawing them to cold storage. This results in a reduction of coin days being destroyed compared to the average.

Evaluating Binary CDD is most effective when considering the prevailing market trend. In bullish markets, Binary CDD often remains consistently at 1, reflecting higher on-chain volumes and the spending of older coins. In contrast, bearish markets exhibit a 'bar-code' style pattern in Binary CDD, with alternating 0 and 1 values, showcasing variable on-chain volumes and coin day lifespans, but with a higher proportion of below-average coin day destruction.

Bitcoin: Binary CDD