A metric that gives weight to the age of coins being spent — one coin held for 100 days then moved equals 100 coin days destroyed. Spikes in this metric indicate that long-dormant coins are being transferred, which may signal that experienced holders are repositioning. High CDD readings often coincide with major market turning points, making it a valuable on-chain tool for timing market cycles.
Example
“A massive spike in coin days destroyed suggested that long-term Bitcoin holders were moving coins to exchanges, raising concerns about potential sell pressure.”