GlossaryAdvanced
Exchange Netflow
The difference between the amount of an asset flowing into exchange wallets and the amount flowing out, over a given period.
Exchange netflow measures the difference between the total amount of an asset flowing into known exchange wallet addresses and the total amount flowing out, over a given period of time.
Positive netflow (more flowing in than out) is commonly discussed as a potential sign of accumulated selling intent, since exchanges are where an asset is typically sold; negative netflow is commonly discussed as the opposite — though this is a general pattern, not a guaranteed signal, since exchange deposits and withdrawals happen for many other reasons too.
Examples
- A sustained period of positive exchange netflow for an asset is commonly watched as one input among several when assessing potential selling pressure.
- Exchange netflow depends on accurately identifying which wallet addresses actually belong to exchanges, which isn't always complete or current.