Definition. Entity- and Supply-Adjusted Coin Years Destroyed is the 365-day rolling sum of Coin Days Destroyed (CDD), computed on the entity-clean spending stream and normalized by circulating supply.

Technical. Entity-adjustment discards transactions within addresses controlled by the same network participant. Supply-adjustment divides by circulating supply to account for the increasing baseline of the metric over time.

Interpretation. CYD is indicative of long-term holder behaviour.

Notes. First put forward by ARK Invest and further developed by Glassnode by adjusting for the circulating supply. For more information on entity-adjustment and account-based metrics, read our articles here and here.