This metric shows the Value Days Destroyed (VDD) Multiple of Kaspa's price action across time. The VDD Multiple is an on-chain metric used to analyze conviction-weighted spending behavior by long-term holders. It compares the current level of “value destruction”—the USD-weighted value of coins moved multiplied by their age—against long-term historical averages.

It is based on the Coin Days Destroyed (CDD) metric, a proxy for spending velocity that measures how long coins remain dormant before being spent. The CDD metric was first introduced in 2011 on the BitcoinTalk forum, where it was described as “a good indicator of market health and participation.” CDD is calculated as the number of coins spent multiplied by the number of days they were held prior to spending, giving greater weight to long-dormant coins.

To adjust for price changes, the VDD multiplies the CDD value by the Kaspa price, yielding a more economically meaningful assessment of market activity. The VDD Multiple is then calculated by dividing the 30-day moving average of VDD by its 365-day moving average, with an additional supply normalization factor to allow comparability over time.

Formula: (MA30(CDD × Price) / MA365(CDD × Price)) × (Supply / 21e6)

Because long-dormant coins carry greater informational weight when they move, VDD helps identify periods of unusually high conviction spending versus quiet accumulation.

When older coins that have remained dormant for extended periods enter the market, this often reflects profit-taking or distribution by long-term holders, which has historically occurred during late-cycle conditions rather than serving as a direct predictor of price direction.

How to Read the Chart

The chart consists of the following components:

Kaspa Market Price (White Line): Recorded in USD and plotted against the price on the y-axis and time on the x-axis from just before January 2023 to the present. This line provides price context for interpreting changes in VDD behavior.

Value Days Destroyed (VDD) Multiple (Candles): Plotted as a dimensionless multiple, with color thresholds used to highlight different spending regimes:

• Green candles: VDD Multiple below 1

• Yellow candles: VDD Multiple between 1.0 and 2.9

• Red bars (Extreme Value Days): VDD Multiple above 2.9

Historically, extreme VDD events have been relatively rare and tend to cluster around major market transitions.

You can also switch the chart between linear and Logarithmic (Log) scales. 

Why Is This Important?

By normalizing value-weighted coin dormancy against its long-term mean, the VDD Multiple removes noise and highlights meaningful deviations from average on-chain activity.

Low VDD values (below 1) suggest dormant holders remain inactive, a hallmark of accumulation or consolidation phases.

High VDD values (above ~2) signal that long-held coins are being spent, often aligning with late-cycle distribution, profit-taking, or major repricing events.

The VDD Multiple is best used as a confirmation tool, providing insight into long-term holder behavior rather than serving as a standalone price-prediction signal.