Coin Days Destroyed (CDD)

Definition

Coin Days evaluates the number of coins that are not being spent, which gives more weight to estimate long-term-holder(LTH) position. When that coin is spent, the coin is considered "destroyed," and is being updated on Coin Days Destroyed(CDD) metric. CDD is the sum of products of spent transaction output alive days and its value.
CDD=ospent outputslifespanovalueoCDD=\sum_{o \in \text{spent outputs}}\text{lifespan}_o*\text{value}_o

Interpretation

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.

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Last modified 1mo ago