Coin Days Destroyed (CDD) quantifies the economic weight of Bitcoin transactions by multiplying the number of coins moved by the number of days they were held before moving. It distinguishes between meaningful economic activity and trivial transfers.
Coin Days Destroyed (CDD) quantifies the economic weight of Bitcoin transactions by multiplying the number of coins moved by the number of days they were held before moving. It distinguishes between meaningful economic activity and trivial transfers.
Coin Days Destroyed assigns weight to transactions based on how long the coins were dormant before being spent. If 10 BTC that sat untouched for 100 days is moved, that transaction destroys 1,000 coin-days. A fresh 10 BTC moved after just one day destroys only 10 coin-days. This weighting reveals when significant, long-dormant holdings enter circulation.
High CDD periods indicate that old coins are on the move, which often signals important market events. During bull market peaks, CDD tends to spike as early adopters and long-term holders distribute their positions. During bear market bottoms, CDD typically drops to low levels as most activity involves only recently acquired coins — long-term holders are firmly in accumulation mode.
CDD is the foundation for several derivative metrics, including Binary CDD, dormancy, and various holder behavior indicators. While raw CDD can be volatile and hard to interpret in isolation, its derivatives smooth and contextualize the data for practical use. Understanding CDD is essential for grasping how on-chain analysts measure the conviction and behavior of Bitcoin's most experienced participants.
Transaction volume treats all coins equally regardless of history. CDD adds a time dimension by weighting each coin by how long it was held. Moving 100 BTC held for 5 years is far more significant than moving 100 BTC held for 5 minutes, and CDD captures this distinction.
CDD spikes occur when large quantities of old coins move simultaneously. This can happen when long-term holders sell near cycle tops, when exchanges consolidate cold storage, or when lost coins are recovered. Context from other metrics is needed to determine the cause.
Not necessarily. While high CDD during a parabolic rally often signals distribution, it can also occur during healthy market restructuring. For instance, institutional custody migration can produce high CDD without actual selling. The price trend and holder composition provide essential context.