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Description

Liveliness is the ratio between the sum of Bitcoin Days Destroyed and the sum of all Bitcoin Days Ever Created. It reflects investor behavior on the network, increasing as long-term holders liquidate positions and decreasing during accumulation phases. A high Liveliness indicates a higher rate of meaningful on-chain activity, whereas a lower Liveliness suggests that a greater portion of supply is inactive or being held. Liveliness approaches 1 if all coins move within a single block and trends toward 0 in a network where coins remain dormant aside from issuance. It provides insight into whether the network is primarily being used for transactions or long-term holding. The number of “Lost or HODLed Bitcoins” can be derived by subtracting Liveliness from 1 and multiplying the result by the total supply. This value tends to decrease during bull markets, when more coins are spent or traded, and increase during periods of low price volatility, when accumulation is more common. HODLer Net Position Change measures the net accumulation or distribution of Bitcoin by long-term holders. It reflects changes in the total balance of these holders over time. During bull markets, this metric tends to decline as long-term holders sell into rising prices. Conversely, it rises in bear markets or periods of consolidation, when these participants accumulate more Bitcoin. While Liveliness measures overall investor activity across the network, HODLer Net Position Change focuses specifically on behavior among large, long-term holders.

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Use Case

Traders use these metrics by staying ahead of whale activity, which can dramatically shift token prices. Analysts use these metrics to identify the stage of the market. **Researchers **use these metrics to find patterns of whale activity to token prices, and to find measures of network activity (liveliness) to adoption rates.

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Methodology

Coin Days Created (CDC) = Cumulative Sum of (Issuance * Reward Days Created) Liveliness = SUM(Coin Days Destroyed) / SUM(CDC) **HODLed Coins **= (1 - Liveliness) * Supply HODLer Net Position Change = Daily or monthly change in HODLed Coins