An interframe wavelet video coding (IWVC) method by which an average temporal distance (ATD) is minimized is provided. The IWVC method comprises receiving a group-of-frames and decomposing the group-of-frames into difference frames and first average frames between the frames in a first forward temporal direction and a backward temporal direction, wavelet-decomposing the first difference frames and the first average frames, and quantizing coefficients resulting from the wavelet-decomposition to generate a bitstream. The IWVC method provides improved video coding performance.