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Diamond Hand Index

This indicator reflects how strongly token holders are maintaining their positions. It's calculated by the formula:

 Diamond Hand Index = (Actual Total Token Day) / (Theoretically Max Token Day)

Actual Total Token Day: Refers to the cumulative holding period of all tokens. See Total Token Day for more details.

Theoretically Max Token Day: The maximum possible token days if all tokens were held since launch.

 Theoretically Max Token Day = Total Supply × Days Since Launch

Example

Token A has a total supply of 1,000 tokens and launched 30 days ago. The theoretically max token day is: 1,000 × 30 = 30,000 token days

If the actual token day is 15,000, then the Diamond Hand Index is: 15,000 ÷ 30,000 = 0.5 at the current day

Interpretation

  • Higher index values indicate stronger holder retention and less token circulation
  • Lower index values suggest more frequent trading and transfers between wallets

Limitations

If a significant portion of tokens are held in centralized exchange (CEX) wallets, staking contracts, or inactive/dead wallets, the index may appear artificially high. In such cases, consider using the Diamond Hand Index Adjusted for a more accurate representation.