Supply-Adjusted Coin Days Destroyed (CDD) normalizes the raw CDD metric against total circulating supply, calculating the ratio of coin days destroyed to total supply at any given point in time. This adjustment accounts for the natural growth of circulating supply over time, producing a more consistent long-run signal of long-term holder behavior that is directly comparable across different stages of an asset's history.
When Supply-Adjusted CDD is elevated, long-term holders are destroying a disproportionate number of coin days relative to total supply - indicating that older, longer-dormant coins are being moved at a rate that is meaningful in the context of current supply levels. This is historically associated with increased distribution activity from conviction holders and has frequently preceded or coincided with periods of heightened sell-side pressure and local or cycle-level price peaks.
Low values indicate that long-term holders are largely inactive relative to supply - coins are remaining dormant and fewer accumulated coin days are being destroyed, reflecting a market environment where experienced participants are holding rather than distributing. Tracked alongside raw CDD, Exchange Inflow CDD, and SOPR, Supply-Adjusted CDD provides a supply-normalized lens on long-term holder behavior that helps identify regime shifts in conviction-driven selling activity across market cycles.
