Binary Coin Days Destroyed (Binary CDD) is an on-chain metric used in cryptocurrency analysis that assigns a value of 1 when the Coin Days Destroyed metric exceeds its average, and 0 when it does not. This simplifies interpretation by clearly indicating whether long-term holders are spending their coins at an above-average rate. A sustained reading of 1 can signal distribution by experienced holders and potential changes in market trend.
Example
“Binary CDD flipped to 1 for three consecutive days, suggesting that long-term Bitcoin holders were moving coins and potentially taking profits.”