--- title: "Value Days Destroyed: Formula, Meaning" description: "Coin days destroyed weighted by the USD value of the coins, so each spent coin contributes its age times its price. It extends CDD by bringing market value..." canonical: https://www.getswoopr.com/indicators/crypto/value-days-destroyed/ source: "Swoopr Investment: https://www.getswoopr.com" --- ## Direct Answer > Coin days destroyed weighted by the USD value of the coins, so each spent coin contributes its age times its price. It extends CDD by bringing market value into the measure. Spikes show that old coins moved at high dollar value, so they are dominated by price level as well as dormancy. # Value Days Destroyed: Formula, Meaning, Signals, Examples and How to Use It ## How Is Value Days Destroyed Calculated? Coin days destroyed weighted by the USD value of the coins, so each spent coin contributes its age times its price. It extends CDD by bringing market value into the measure. **Formula:** `VDD = sum over spent outputs of (coin amount x days since created x price at spend time)` **Inputs:** - Spent outputs with amounts and creation dates - Price at spend time **Worked example.** If 10 coins last moved 200 days earlier and 5 coins 30 days earlier, with a price of 60000 USD (illustrative), value days destroyed are 129,000,000. The inputs are illustrative numbers, not market data. **Reading it.** Spikes show that old coins moved at high dollar value, so they are dominated by price level as well as dormancy. Analysts use it to compare activity of old holders across periods when price differed. **Limits.** Because price is in the formula, the series rises mechanically in high-price periods. Movement of old coins is not necessarily selling, and conventions for the price used vary. ## What is Value Days Destroyed? Coin days destroyed weighted by the USD value of the coins, so each spent coin contributes its age times its price. It extends CDD by bringing market value into the measure. ## How to use Value Days Destroyed Spikes show that old coins moved at high dollar value, so they are dominated by price level as well as dormancy. Analysts use it to compare activity of old holders across periods when price differed. A reading alone is never a buy or sell signal; it needs context from price structure, volume, volatility and the broader market regime. ## Strengths - Multiplying age by USD value weights old, valuable coins most, so large old movements stand out. - It reuses the coin days destroyed structure, so a series can be compared directly with its unweighted counterpart. - Reproducible when the formula and data convention are fixed. ## Weaknesses and limitations - Because value and age multiply, the series is skewed by a few large, old coins, with much of its mass in rare days. - It uses price at spend time rather than at creation time, so it reflects the value of the coins when moved, not the profit. - Correlated indicators can create false confidence by repeating the same underlying information. ## Editorial and risk note This page is educational content, not individualized investment advice. It should not imply guaranteed prediction, accuracy or outperformance. ## Frequently Asked Questions Is Value Days Destroyed a buy or sell signal? No. Spikes show that old coins moved at high dollar value, so they are dominated by price level as well as dormancy. Because price is in the formula, the series rises mechanically in high-price periods. A trade built on it still needs a trigger, an invalidation rule, a position size and realistic execution assumptions. What is the best setting for Value Days Destroyed? Value Days Destroyed is computed from spent outputs with amounts and creation dates; price at spend time, so the choices that matter are the data convention and the window it is read over. Test those across instruments, regimes and out-of-sample periods instead of fitting one historical winner. Can Value Days Destroyed be used by itself? Because price is in the formula, the series rises mechanically in high-price periods. Movement of old coins is not necessarily selling, and conventions for the price used vary. For that reason it is read next to measures of direction, participation, valuation, liquidity and risk, not alone. Does Value Days Destroyed work on every timeframe? The calculation (VDD = sum over spent outputs of (coin amount x days since created x price at spend time)) can be run on any bar size, but behavior is not portable: a reading on a five-minute chart describes a very different market window from the same reading on a daily chart. Validate the exact timeframe before relying on it. Why does Value Days Destroyed give false signals? Because value and age multiply, the series is skewed by a few large, old coins, with much of its mass in rare days. It uses price at spend time rather than at creation time, so it reflects the value of the coins when moved, not the profit. Lag, noise and regime changes add to this, because market participants react to new information after the reading is calculated. How should Value Days Destroyed be backtested? Rebuild Value Days Destroyed from spent outputs with amounts and creation dates using point-in-time data, write the rules before testing, include delisted securities where relevant, model realistic fills and costs, reserve a validation sample and compare with a simpler baseline. S Swoopr Editorial Team The Swoopr Editorial Team produces independent investment education, research, and tools for understanding markets, evaluating opportunities, and managing risk. All content is educational only and does not constitute personalized investment advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).