Clear DefinitionsCoin Days Destroyed
1 min read
Pronunciation
[koyn dayz dih-stroyd]
Analogy
Like tracking how many days a parked car stayed idle before it suddenly hit the road again.
Definition
A metric measuring blockchain activity by multiplying the amount of coins in a transaction by the number of days since they were last spent. It highlights dormant coins reactivating.
Key Points Intro
Coin Days Destroyed quantifies the movement of long‑dormant funds.
Key Points
Activity insight: Spikes indicate old holders moving coins.
Market signal: High values may precede volatility or sell‑offs.
Calculation: Sum over all inputs: amount × days since last spend.
Normalization: Often divided by circulating supply or transaction volume.
Example
If 10 BTC last moved 100 days ago are spent today, they contribute 1,000 coin‑days destroyed to the metric.
Technical Deep Dive
Nodes track UTXO age by block height. On transaction, client computes `coinDays = Σ(utxo.value * (currentHeight - utxo.height))`. Time-based variant uses timestamps. Aggregation occurs in analytics platforms like Glassnode or custom scripts.
Caveat
Metric can be skewed by self-churn transactions; apply filtering to exclude internal transfers.
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