Coin Days Destroyed (CDD) measures the economic weight of on-chain transactions by multiplying the amount of coins moved by the number of days they had been dormant before being spent - assigning greater significance to the movement of older, longer-held coins than to recently transacted ones. A coin held for 100 days contributes 100 coin days when spent; a coin held for 1 day contributes 1.
When CDD is elevated, a significant volume of long-dormant coins are being moved on-chain - historically a meaningful signal that long-term holders are becoming active, whether through distribution, repositioning, or exchange deposits. Because older coins are more likely to be held by experienced market participants with lower cost bases and higher unrealized profits, spikes in CDD have frequently preceded or coincided with increased sell-side pressure and local or cycle-level price peaks.
Low CDD indicates that on-chain activity is dominated by recently moved coins - short-term traders and active market participants cycling coins frequently - with long-term holders remaining largely inactive. Tracked alongside Supply-Adjusted CDD, Exchange Inflow CDD, and SOPR, CDD provides a foundational view of whether dormant supply is being reactivated and when conviction holders are beginning to participate in market activity in a structurally significant way.
