Solana’s Old Hands Are Moving—Is Trouble Brewing?

Solana's "Coin Days Destroyed" (CDD) metric has recently spiked, indicating significant movement of dormant SOL tokens. CDD measures the total coin days reset when tokens are transferred after periods of inactivity. This spike suggests activity from long-term holders (LTHs), who typically hold tokens for extended periods. LTHs hold a substantial number of coin days, so their transactions result in a notable CDD increase. The recent spike involved the destruction of 3.55 billion coin days, a substantial amount. This marks the third significant CDD spike in 2024, following two larger ones in late February and early March. Such spikes can suggest a potential shift in holder conviction, possibly indicating profit-taking. Previous spikes were followed by others, leading to speculation about potential price impacts. Historically, LTHs often sell when they decide to participate in the market. Solana's price is currently around $153.9, experiencing a more than 10% decrease in the last week. The market is watching to see if this recent spike will be followed by further activity.