Definition. Dormancy Flow is the ratio of the current market capitalization to the annualized dormancy value (measured in USD). Average Coin Dormancy is the underlying dormancy metric.

Technical. For BTC, dormancy is based on Entity-Adjusted Dormancy, for other assets it's based on Average Coin Dormancy. For the other native coins, the market cap is the sum of all address balances valued at the current price, so it can differ from Market Cap, which is based on circulating supply. For all assets except BTC, coin age is the time since an address's balance-weighted average acquisition time. For ETH, transfer volume excludes internal transfers. For ETH tokens and TON tokens, all transfers are counted. For ETH tokens, burn addresses are excluded.

Interpretation. The metric can be used to time market lows and to assess whether a bull market remains in relatively normal conditions, helping confirm whether an asset is in a bullish or bearish primary trend.

Notes. Put forward by David Puell. For more information, see his introductory article.