Bitcoin’s Coin Days Destroyed (CDD) is a granular on-chain metric that quantifies the dormancy-weighted movement of bitcoin by multiplying the quantity of coins transferred by the number of days since those coins were last spent, thus assigning greater significance to the activity of long-held UTxOs; when such coins are finally transacted, their accumulated “coin days” are considered destroyed, producing a time-weighted measure of spending behavior that complements raw volume and price data. Coin Days Destroyed consequently registers not just how much bitcoin moves, but how dormant those units were prior to movement: spending 100 BTC held for seven days produces 700 coin days destroyed, and summing such values across transactions yields a signal of long-term holder activity versus short-term churn. Adjusted variants normalize CDD by total supply and employ smoothing such as a 90-day moving average, reducing noise and highlighting structural shifts in holder behavior. The recent 50% plunge in CDD, occurring while Bitcoin’s price remains above $40,000, presents a nuanced picture. On the surface, sharply lower CDD implies veteran holders are not converting long-dormant reserves into liquidity; what would historically accompany a price surge — significant coin days destroyed as long-term holders take profits — is notably absent. This divergence suggests the rally is being sustained by accumulation, fresh inflows, and possibly institutional demand, rather than distribution from legacy holders. Fewer destroyed coin days during an upswing typically indicates a stronger “hold” posture among seasoned wallets, which can impart resilience to price appreciation. Interpreting this phenomenon requires caution. Low CDD during rising prices can signal continued upside potential, since selling pressure from entrenched holders is muted; however, it does not guarantee an uninterrupted advance, because market tops have historically coincided with spikes in CDD as distribution intensifies. Metrics that build on CDD, such as VDD multiples or terminal-adjusted measures, help contextualize current readings within longer-term cycles and reduce false signals. Analysts and investors thus view the CDD decline as a meaningful input rather than a definitive forecast, combining it with liquidity, order flow, and macro factors to assess timing and risk. The present pattern leans toward conviction among long-term holders, but uncertainties remain, and vigilance in monitoring sudden CDD reversals is prudent. Additionally, CDD is calculated by multiplying bitcoin amounts by the days since last spent, which directly links transaction age to the metric’s value calculation. Long-term holders accumulate coin days while UTXOs remain unspent, making CDD particularly sensitive to the behavior of large, aged balances. Similar to Bitcoin’s Proof-of-Work model, other networks like Kaspa also strive to balance transaction speed and network security through innovative protocols such as GHOSTDAG.
