The Value Days Destroyed Multiple (or VDD for short) utilizes the Coin Days Destroyed principle to identify when the price of KAS may approach a major cycle high and potentially top out. 

To learn more about the Coin Days Destroyed principle for Kaspa, visit our chart here. 

The VDD multiplies the CDD by the price of KAS. This allows charters to compare the spending velocity of KAS as the price of KAS changes over time. The VDD then divides the 30-day average VDD of KAS by a 365-day average to compare the velocity of short-term spending versus long-term spending. 

Why is it Important? 

The VDD is valuable for KAS charters to identify when older KAS coins enter the market for potential sale. In other words, the VDD identifies when long-term holders are more willing to sell their holdings due to a market cycle high. Historically, older coins entering the market have caused prices to drop in anticipation of the end of a bull market. To put it simply, the VDD could help identify the end of a Kaspa bull run. 

How to Read the Chart

Historically for Kaspa, extreme value days destroyed have been identified on the chart when a VDD score of +15 is reached. However, one should be cautious as the score moves close to 10. 

Want to Learn More?

You can learn more about the Value Days Destroyed (VDD) Multiple in the paper A New Experiment in Cumulative Destruction.