Binary CDD

Binary signal for above-average coin-day destruction — filters noise from raw CDD

Property	Value
Category	Coin Days
Unit	Dimensionless
Resolution	1d
Assets	BTC
Tier	Basic
API Endpoint	GET /v1/coindays
Field	binary_cdd

Overview

Binary CDD converts the noisy daily Coin Days Destroyed signal into a clean binary indicator. On any given day, Binary CDD equals 1 if CDD exceeded its trailing 365-day moving average, and 0 otherwise. This strips away the magnitude of destruction events and focuses purely on whether old-coin spending is above or below its recent trend.

The metric is most useful when aggregated over a rolling window (e.g., sum over 30 days = how many of the last 30 days had above-average destruction). This creates a bounded oscillator (0–30) that cleanly identifies accumulation vs distribution regimes.

Formula

$$\text{Binary CDD}_t = \begin{cases} 1 & \text{if } \text{CDD}_t \gt \text{MA}_{365}(\text{CDD})_t \\ 0 & \text{otherwise} \end{cases}$$

Where:

• $\text{CDD}_t$ is Coin Days Destroyed on day $t$
• $\text{MA}_{365}(\text{CDD})_t$ is the 365-day trailing moving average of CDD (excluding the current day)

Interpretation

• Binary CDD = 1: Above-average destruction — more old coins moved than typical. Can indicate profit-taking, whale redistribution, or exchange movements
• Binary CDD = 0: Below-average destruction — old coins are staying put. Consistent with accumulation and HODLing
• Rolling sum (e.g., 30 days): A reading above 20/30 suggests sustained distribution; below 10/30 suggests strong accumulation
• Trend changes: Transitions from sustained 0s to sustained 1s (and vice versa) mark regime shifts in holder behavior

Use Cases

• Regime classification oscillator: Sum Binary CDD over 30 days to create a 0–30 oscillator for accumulation/distribution scoring
• Noise reduction: Binary CDD removes the scale problem of raw CDD — a 10M CDD spike and a 100M CDD spike both register as 1, focusing on frequency over magnitude
• Alert system input: Binary CDD streaks (multiple consecutive 1s) can trigger automated alerts for potential distribution events
• Cross-metric confirmation: Combine with SOPR, MVRV, or exchange flow data to build composite cycle indicators

API Usage

curl -H "Authorization: Bearer YOUR_API_KEY" \
  "https://api.blocklens.co/v1/coindays?start_date=2024-01-01&end_date=2024-12-31&limit=365"

Related Metrics

• Coin Days Destroyed — Sum of coin age × amount for all spent UTXOs per day — a fundamental measure of on-chain economic activity
• Supply-Adjusted CDD — CDD per BTC in circulation — normalizes destruction for supply growth across market cycles
• Net Coin Days — Coin Days Created minus Coin Days Destroyed — positive means the network is aging (accumulating), negative means old coins are moving