Coin Days Destroyed(CDD) evaluates the number of coins that are not being spent, which gives more weight to estimate long-term-holder(LTH) position. CDD is the sum of products of spent transaction output alive days and its value.
CDD is an indicator that enables determining the sentiment amongst long-term-holders.
For every coin that has not been spent on that day, it accumulates one "Coin Day." To understand the concept of "Coin Day" better, check the examples below.
A UTXO for 1 BTC that has not been spent for 10-days has accumulated 10 coin days.
A UTXO for 0.5 BTC that has not been spent for 100-days has accumulated 50 coin days.
A UTXO for 8 BTC that has not been spent for 6-hours (1/4 day) has accumulated 2 coin days.
When that coin is spent, the coin is considered "destroyed," and is being updated on CDD metric.
CDD: An indicator reflects market participants who have been in the bitcoin on-chain for longer.
Supply Adjusted CDD: Normalized CDD by supply total.
Average Supply Adjusted CDD: Average value of Supply-Adjusted CDD since genesis block.
Binary_CDD: Signal whether the current Supply-Adjusted CDD is larger than its average or not.