Definition. Liveliness is a metric which provides insights into shifts in macro HODLing behaviour, helping to identify trends in long term holder accumulation or spending. It highlights periods where coindays are being destroyed at a rate faster than the global network is accumulating them. This chart presents four variants of Liveliness, plotted with price (black):

• 🟠 Liveliness as the unfiltered variant.

• 🟣 Entity-Adjusted Liveliness filtering out internal transfers, and thus reflecting economically meaningful activity.

• 🔵 Long-Term Holder Liveliness for coins within the LTH cohort.

• 🔴 Short-Term Holder Liveliness for coins within the STH cohort.

Technical. Every day the network accumulates one coinday per unit of circulating supply, while some of those coindays are spent and destroyed in transactions, resetting the moved coins' lifespan to zero. Liveliness is calculated by taking the ratio of cumulative coindays destroyed to the cumulative sum of all coindays ever accumulated by the network. The cohort variants apply the same construction within each cohort:

• Cohort Liveliness = cumsum(Cohort CDD) / cumsum(Cohort Supply)

using the entity-adjusted LTH and STH CDD and supply series.

Interpretation. Liveliness varies between a value of 1 for a protocol where every coin is spent at once, and 0 for a protocol where no transaction has taken place. Values between these theoretical extremes can generally be considered within the following framework:

• Liveliness will decrease when a high proportion of coin supply is dormant (i.e. HODLing behaviour) and the global coinday accumulation outpaces coindays destroyed in on-chain activity.

• Liveliness will trend sideways where coindays destroyed are equal to the coindays accumulated by the circulating supply.

• Liveliness will increase when long term holders begin spending old coins that have accumulated large volumes of coindays exceeding the rate of global coinday accumulation.

Notes. For more information, please refer to Liveliness on Glassnode Academy. Built from Liveliness, Entity-Adjusted Liveliness and the entity-adjusted cohort CDD and supply series. The Cointime Economics treatment of Liveliness and its complement Vaultedness is charted at Liveliness & Vaultedness, and a binary regime view at Binary Liveliness.