Abstract: Coin Lifespan Analysis
Coin Lifespan Analysis is a specialized area within on-chain analytics that examines the period individual cryptocurrency units remain dormant before being transacted. Leveraging the transparency of blockchain ledgers, this approach enables the precise timestamping of each unspent transaction output (UTXO), allowing analysts to calculate the “lifespan” of coins—from their last movement to their next. Key metrics such as Coin Days Destroyed (CDD) and Average Lifespan per Coin provide valuable insights into investor holding patterns, accumulation and distribution trends, and the overall sentiment of long-term holders. High CDD values typically signal profit-taking or reduced conviction among experienced investors, while low values indicate strong holding behavior and market confidence. By quantifying both the creation and destruction of coin holding time, lifespan analysis offers a macro-level perspective on market cycles, helping to identify accumulation and distribution regimes and to anticipate shifts in market dynamics1 2 3.