Exchange Inflow
Exchange inflow refers to the total volume of a specific cryptocurrency moved from private wallets to centralized exchange platforms. This metric is closely monitored to gauge the immediate supply of an asset available for trading.
Large inflows are often interpreted as a precursor to selling, as users typically deposit assets onto exchanges to execute trades or convert them to stablecoins. Monitoring these flows helps analysts identify shifts in investor intent and potential changes in market volatility.
By correlating inflows with price action, traders can better understand the balance between selling pressure and demand. It is a critical indicator for assessing the short-term supply-side dynamics of an asset.