Don't panic, the current BTC: VDD indicator has entered the bottom range 😼 Value Days Destroyed Multiple "(VDD Multiple) is an on chain indicator used to analyze the behavior of the Bitcoin market, mainly used to evaluate the spending speed and market status of Bitcoin. It is based on the fundamental concept of "Coin Days Destroyed" (CDD), which has been further processed and calculated Definition and Calculation 1. Coin Days Destroyed (CDD)： CDD measures the number of days Bitcoin is' destroyed 'while moving on the chain. Coin days refer to the accumulated amount of time a Bitcoin is held for, for example, if one BTC is held for 100 days without movement, it accumulates to 100 coin days. If this BTC is transferred or spent, these coins will be 'destroyed' and counted towards CDD. Calculation formula: CDD=number of moved bitcoins x number of days since last move. 2. Value Days Destroyed (VDD)： VDD introduces the price factor of Bitcoin based on CDD, multiplying CDD by the current BTC price (in US dollars) to reflect the "economic value" of destruction. This enables the indicator to better compare expenditure behavior under different price cycles. Calculation formula: VDD=CDD × BTC price 3. Value Days Destroyed Multiple (VDD Multiple)： VDD Multiple is a ratio obtained by dividing the short-term (usually 30 days) average VDD by the long-term (usually 365 days) average VDD. This ratio reflects the comparison between the recent expenditure rate and the annual average expenditure rate. Calculation formula: VDD Multiple=30 day average VDD ÷ 365 day average VDD. VDD is mainly used to identify cyclical highs and lows in the Bitcoin market This article is sponsored by Bitget | @ Bitgetzh