What Is Coin Days Destroyed?
Coin Days Destroyed (CDD) measures the movement of dormant coins by weighting transaction volume by coin age. If 10 BTC that hasn't moved in 100 days is spent, it destroys 1,000 coin-days. A transfer of 10 BTC that was received yesterday destroys only 10 coin-days. This weighting highlights when long-term holders move their coins.
How Coin Days Destroyed Works
High CDD spikes indicate that old, dormant coins are being moved — often a sign that early holders or large positions are taking profit or redistributing. Since these holders typically have deep market insight (they bought early and held through volatility), their movements carry predictive weight. CDD is often smoothed to a 90-day average to filter noise.
Why It Matters for Traders
CDD spikes near market tops are a classic distribution signal — long-term holders who accumulated at lower prices are selling into strength. Conversely, low CDD during a rally means old holders aren't selling, suggesting the uptrend has room to continue. CDD provides a direct window into smart money behavior that spot price alone can't reveal.
