> For the complete documentation index, see [llms.txt](https://cddstamp.gitbook.io/cddstamp/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cddstamp.gitbook.io/cddstamp/dormancy-flow/average-dormancy-block-based.md).

# Average Dormancy – Block-Based

### 📘 Average Dormancy – Block-Based

#### What Is It?

**Average Dormancy** measures the average age of coins that moved in a specific block.\
In other words, how long had the coins been dormant before they were transacted?

> It doesn’t just show how many coins moved—it shows **how old** the moved coins were.

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### 🔢 Formula

<figure><img src="/files/AtcCVhztTA69LdwM4v3u" alt=""><figcaption></figcaption></figure>

* `b_cdd`: Total coin-days destroyed in the block
* `b_val`: Total coin volume transferred in the block

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### 🧭 What Is It Used For?

* **Distinguishing Short vs Long-Term Investors:**\
  High Average Dormancy → Older coins are moving\
  Low Average Dormancy → Mostly fresh coins or short-term activity
* **Tracking Trend Health:**\
  If price rises but average dormancy also rises → smart money might be exiting
* **Dip Identification:**\
  Low price + low dormancy = likely accumulation by new holders or exchanges

***

### 🎯 Why Use Block-Based Data?

While daily averages can hide important movements, **block-based dormancy** offers:

* Higher resolution
* Faster detection of behavioral shifts
* Ability to catch short-term trend changes

> Instead of “what happened today,” block-level analysis answers:\
> “**Who just woke up in this exact block?**”

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### 🔍 What to Watch For

* **High Values:**\
  Average dormancy exceeding 50–100 days often signals older holders moving funds
* **Very Low Values:**\
  Average of 1–2 days = mostly new coins or internal exchange flows, often low volatility
* **Rising Price + Rising Dormancy:**\
  This is a red flag. It can mean long-term holders are selling into strength.

***

### ⚙️ How It Works

1. Each coin’s age (days since last moved) is calculated
2. Age × amount = coin-day destroyed
3. Sum of all coin-days / total transferred volume = average dormancy

***

### 🧠 Strategic Interpretations

* “Price is flat, but average dormancy just spiked → old coins moving silently.”
* “Dormancy stayed low during price rally → strong hands are holding.”
* “Price surged and so did dormancy → be cautious, distribution may be underway.”