Value Days Destroyed (VDD) is an on-chain metric that measures the economic significance of Bitcoin transactions by accounting for both the amount of BTC moved and the duration it remained dormant. When older coins are spent, the VDD value increases, indicating that long-term holders are moving their assets. This metric provides insight into the velocity of money and the behavior of seasoned investors. It signals shifts in market sentiment.
Context
Analysts and news outlets often refer to Value Days Destroyed to assess whether market movements are driven by new capital or by the redistribution of older, long-held coins. High VDD spikes can sometimes signal capitulation events or significant profit-taking by long-term holders. This metric helps distinguish between different phases of a market cycle.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
