Cryptocurrency analyst Joao Wedson conducted an in-depth analysis of Coin Days Destroyed (CDD) trends across major UTXO blockchains including Dash, Litecoin, Dogecoin, and Zcash.
Significance of Coin Days Destroyed Metric
Coin Days Destroyed is a key metric used to measure the movement of old coins on a blockchain. It is calculated by multiplying the number of coins transferred by the number of days they have been inactive. This helps analysts determine whether long-term holders are selling or continuing to hold on to their holdings.
Data Analysis for DASH, LTC, DOGE, ZEC
Wedson noted the importance of tracking CDD in UTXO-based blockchains, which operate similarly to Bitcoin’s transaction structure. While this metric is typically applied to Bitcoin, his latest research expands the focus to DASH, LTC, DOGE, and ZEC. Significant increases in CDD in these assets occurred during local price peaks in December 2024 and January 2025: DASH hit $65, LTC rose to $136, DOGE reached $0.46, and ZEC climbed to $75.
Current Trends and Their Significance
According to Wedson, these peaks indicate that long-term holders are taking advantage of higher prices to sell their holdings. Additionally, large institutions have been seen selling coins, common during market peaks. Currently, the CDD metric is trending down for DASH, LTC, and DOGE, indicating an accumulation phase where investors are holding onto their coins with confidence in future price growth. Unlike the other three coins, ZEC’s CDD remains high, suggesting continued selling pressure and potential further price declines.
CDD metric analysis provides crucial insights into the behavior of long-term holders and potential market trends on key UTXO blockchains.
