LEARN COIN DAYS DESTROYED INDEX IN 3 MINUTES —— BLOCKCHAIN 101

Today is the final session of our crypto‑native technical indicator series. All (public) crypto‑native indicators have now been taught; you can review past materials to learn even more of these indicators.

SuperEx Academy is the world’s first online academy to comprehensively teach crypto‑native indicators. It offers the most extensive set of technical‑indicator analysis courses and is the world’s most detailed online education base for market indicators. Here, you can find courses on hundreds of commonly used technical indicators and on virtually all crypto‑native indicators.

Today’s lesson topic is “COIN DAYS DESTROYED (CDD).”

You may have heard of common crypto‑market indicators like “trading volume,” “active addresses,” and “hash rate,” but today we’re going to talk about an on‑chain indicator that beginners don’t pay much attention to—yet professional investors care about a lot: Coin Days Destroyed, or CDD.

Don’t worry—the name sounds a bit intimidating, but it’s actually very simple.

What is Coin Days Destroyed (CDD)?

Imagine you have a bitcoin and leave it in your wallet for a year without moving it. When you finally transfer it after a year, that transaction “destroys” the time value the coin had accumulated—its coin days.

Put simply: every coin that isn’t moved accumulates 1 “coin day” per day; once it’s spent (transferred or sold), those coin days are “destroyed.” The system records that as Coin Days Destroyed for that transaction.

CDD = (days held) × (amount of coins)

Example:

You hold 2 BTC for 30 days → 60 coin days.
When you send those 2 BTC, those 60 coin days are “destroyed” on that day.

Why does CDD matter?

This indicator is powerful because it helps us judge whether “old money” in the market has started to move. In other words:

✅ If many long‑held coins suddenly move and CDD spikes, it can mean selling pressure is rising (e.g., distribution by long‑term holders; a potential top approaching).
✅ Conversely, if mainly newly purchased coins are trading while long‑term coins remain untouched, the market structure is healthier.

CDD focuses on who is moving coins, not just whether coins are moving. That’s a different layer of insight than raw trading volume.

CDD vs. Trading Volume: the core difference

Consider 100,000 BTC moving on‑chain today:

Scenario A: Mostly newly bought coins → activity dominated by newer traders; long‑term holders aren’t selling.
Scenario B: Mostly coins that haven’t moved in years → old money is moving; the market may be about to change.

So CDD gives you quality, not just quantity. In on‑chain analytics, it’s like a behavioral DNA fingerprint—it shows not just that funds moved, but how significant the movement is and who likely moved.

How to use CDD to spot turning points

1) High CDD → potential selling pressure
When you see a sudden CDD surge, it often means a lot of long‑dormant coins are being moved—likely being sold or prepared for sale. This typically happens when:

The market is near a peak;
OGs think “it’s time to take profit”;
A major risk event hits (e.g., an exchange blow‑up, regulatory shock).

At such times, watch whether price also softens. CDD rising + price starting to fall can be a top signal.

2) Low CDD + high trading volume → healthier structure
If trading is active but CDD stays low, it’s probably new money rotating while long‑term holders aren’t exiting. That’s structurally healthier and suggests the market isn’t overheated.

Real‑world illustrations: how CDD foreshadows sentiment

Late 2017 bull market:
CDD spiked 1–2 weeks before BTC’s peak. Many long‑dormant addresses moved coins; the market corrected soon after.
DeFi Summer 2020 (ETH):
ETH’s CDD climbed as 2017‑era wallets rotated into DeFi during the Uniswap boom; volatility increased.
FTX collapse:
Multiple historical wallets activated; CDD jumped sharply. On‑chain data signaled capitulation before price‑only charts did.

Pairing CDD with other metrics

Three classic companions:

Realized Cap: Helps judge over/undervaluation.
Liveliness: Gauges overall on‑chain activity trend.
Dormancy: Average holding time—are holders getting “more jittery” or staying patient?

Reading combos:

Realized Cap ↑ + CDD ↑ → Market heating up; be cautious.
Dormancy ↑ → Coins are being held longer on average; less near‑term sell pressure.
Liveliness ↓ → Network quieting; beware doldrums/accumulation phases.

In summary: what is Coin Days Destroyed?

It’s a time‑and‑quantity weighted on‑chain metric.
It helps you see whether long‑term holders (“old money”) are moving.
Combined with trading volume, Dormancy, and Realized Cap, it’s useful for spotting market inflection points.

Final note

In crypto, there’s a saying: “Price can lie, but on‑chain data doesn’t.”Coin Days Destroyed is one of the clearest indicators of long‑term capital’s stance.

If you’re starting to track on‑chain metrics, start with CDD. It’s simple and intuitive—and it truly helps you read the market’s rhythm.