CDD / Coin Days Destroyed
Coin Days Destroyed (CDD)
What is it?
Coin Days Destroyed (CDD) is a metric in the world of cryptocurrencies that assesses the number of "coin days," which refers to the days a cryptocurrency has been held without being spent. One "coin day" represents one day in which a coin has not been spent. This metric places greater emphasis on evaluating the positions of long-term holders (LTH). When a coin is spent, the number of "coin days" it has accumulated is considered "destroyed."
How does it work?
Coin Days Destroyed is calculated by multiplying the number of days since the last coin was spent by the number of coins spent in a transaction. For example, if 10 coins that have not been spent for 100 days are spent, the resulting CDD value will be 1000 coin days destroyed.
Why is it important for cryptocurrency traders?
Coin Days Destroyed provides insight into how long coins have been held before being spent, which can provide valuable information about investor behavior and the overall market condition. Understanding this metric can be a valuable tool in the hands of an experienced cryptocurrency trader.
Updated on: 12/11/2023
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