On-Chain Net Flow

On-chain net flow represents the mathematical difference between the total volume of an asset entering an exchange and the volume exiting it over a specific timeframe. A positive net flow indicates that more assets are being deposited than withdrawn, which is generally interpreted as a bearish signal for price.

A negative net flow shows that more assets are being moved into private custody, suggesting reduced sell-side pressure. This metric serves as a high-level indicator of market participants' intent regarding their positions.

It is widely used by quantitative analysts to refine their models on circulating supply. Understanding this flow helps in identifying structural changes in asset distribution.