Definition. This chart tracks the momentum of Dormancy — the average number of coindays destroyed per coin moved — by comparing its quarterly average 🔴 against its yearly average 🔵, plotted over the raw daily dormancy series (faint orange) and price (grey). Periods of positive momentum are shaded as yellow columns.

Technical. Dormancy is the ratio of coinday destruction to transfer volume, i.e. the average lifespan of the coins spent each day. The momentum traces and regime band are:

• Quarterly Average = sma(Dormancy, 90) 🔴
• Yearly Average = sma(Dormancy, 365) 🔵
• 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 dormancy on any given day can be uninformative. However, comparing its magnitude and trend on a quarterly and yearly basis is much more informative — the crossovers underline relative shifts in the age of coins being spent:

• 90D 🔴 > 365D 🔵 indicates an expansion in dormancy: the average spent coin is getting older, meaning aged supply is on the move — typical of distribution and profit-taking by longer-term investors.

• 90D 🔴 < 365D 🔵 indicates a contraction in dormancy: expenditure is dominated by young coins while old supply stays put — typical of HODLing-dominated, accumulation-oriented regimes.

Notes. This momentum framework was first featured by Glassnode in The Week On-chain newsletter (Week 34, 2022 and Week 43, 2022). Built from Average Dormancy. An entity-adjusted variant is available at Lifespan Dormancy Momentum (Entity-Adjusted), and the cohort decomposition at Long- and Short-Term Holder Dormancy.