Glossary

Exchange netflow

Exchange netflow is the difference between the coins that flow into exchange wallets and the coins that flow out in a given period.

Exchange netflow equals inflows to exchange wallets minus outflows from exchange wallets. A positive value means more coins entered exchanges than left them. A negative value means more coins left than entered. The unit is the coin itself, such as BTC, or its dollar value.

Analysts often link inflows to possible selling, because coins on an exchange are ready to trade. They link outflows to holding or self-custody. This is a common reading, not a rule. A coin can enter an exchange for lending, for collateral or for internal transfers between wallets of one firm.

The data depends on how the provider labels exchange addresses. Unlabeled wallets are missed and some labels are wrong. Netflow also hides the gross volume. Large inflows and large outflows can cancel each other and give a small net figure. Treat the figure as an estimate and compare it over several days.