Average Dormancy estimates the average age of spent BTC on a given day, weighted by the value of those coins. It is built from Coin Days Destroyed and spent BTC volume, so it asks how long the average unit of transferred value had remained dormant before moving.
A high reading means the day’s spent value came from older coins on average. A low reading means spent value was dominated by younger supply. It is most useful with Coin Days Destroyed, ASOL, and MSOL, especially when comparing days with very different transfer volume.
The key distinction is value weighting. Large old transfers matter more here than they do in output-count age metrics, so Dormancy can rise sharply even when most spent outputs were still relatively young.
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