Definition. Liveliness is the ratio of the sum of Coin Days Destroyed to the sum of all coin days ever created. Entity-Adjusted Liveliness is the entity-adjusted variant.

Technical. For BTC, all spent outputs are counted, including change. Other assets use an address-based approach: coin age is the time since an address's balance-weighted average acquisition time, and coin days destroyed come from each address's net balance decrease per block, which removes change. For ETH tokens, burn addresses are excluded.

Interpretation. Liveliness increases as long-term holders liquidate positions and decreases while they accumulate to HODL.

Notes. Created by Tamas Blummer. For a detailed commentary, see his post on the liveliness of Bitcoin.