Definition. This chart tracks the momentum of entity-adjusted coinday destruction by comparing the quarterly average (pink) of Entity-Adjusted Coin Days Destroyed against the yearly average (teal), plotted over the raw daily series (faint orange) and price (grey). Periods of positive momentum are shaded as yellow columns.

Technical. Entity-adjusted CDD filters out transfers that are internal to a single entity (e.g. wallet management and exchange shuffles), leaving only economically meaningful coinday destruction. The momentum traces and regime band are:

• Quarterly Average = sma(Entity-Adjusted CDD, 90) (pink)
• Yearly Average = sma(Entity-Adjusted CDD, 365) (teal)
• Positive Momentum = 1 when the 90D average is above the 365D average (yellow columns)

Interpretation. Due to intraday volatility in on-chain activity metrics, the absolute value of coindays destroyed on any given day can be uninformative. Comparing the magnitude and trend of destruction on a quarterly and yearly basis is much more informative — the crossovers underline relative shifts in spending behavior:

• 90D > 365D indicates an expansion in economically meaningful coinday destruction — older coins changing hands at an accelerating rate, typical of distribution phases and elevated profit-taking.

• 90D < 365D indicates a contraction in coinday destruction — old coins increasingly dormant, typical of HODLing-dominated regimes and accumulation phases.

The entity adjustment makes this variant more conservative than the unadjusted version, as spikes caused by internal wallet reshuffles are removed.

Notes. This momentum framework was first featured by Glassnode in The Week On-chain newsletter (Week 34, 2022 and Week 43, 2022). Built from Entity-Adjusted CDD. The unadjusted variant is at Lifespan CDD Momentum.