Liveliness is a quantitative measure that provides insights into shifts in HODLing behaviour. It highlights when old (dormant) coins are being moved, versus newer coins being moved.
Liveliness trends down for crypto assets with dormant units (i.e. HODLing behaviour), while an increase in this metric often represents liquidation of long-term positions.
The liveliness metric can also be used to assign weight to the value of market cap valuations, as it will be close to zero for assets with low liquidity or adoption but high market cap (either through pre-mined coins or wash trading the same units).
Liveliness is defined as the ratio of the cumulative Coin Days Destroyed and the sum of all coin days ever created.
Tamas Blummer - Liveliness of Bitcoin