Dormancy Flow is the ratio between the value of a cohorts holdings, and the rolling annual USD value of coinday destruction. Dormancy Flow acts to create both a time and volume weighted oscillator which compares the weight of holdings to expended holding time.

Dormancy Flow = Cohort Supply * Price / sum(Dormancy * Price, 365)

• Low Values of Dormancy Flow signals that the total value of supply held is low relative to the value of coinday destruction by that cohort. This is typical of low volatility, and low on-chain activity rates by that cohort.

• High Values of Dormancy Flow signals that the total value of supply held is high relative to the value of coinday destruction by that cohort. This is typical of periods of high on-chain expenditure by that cohort.