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Intro to On-Chain

Background Knowledge

Exchange Flows/Indicators

Miner Flows/Indicators

UTXO Data/Indicators

Market Data/Indicators

Network Indicators

Stablecoin Exchange Flows/Indicators

Fund data & Premium

Stablecoin Exchange In/Outflow & Netflow

Stablecoin Exchange Inflow is defined as an amount of Stablecoin deposited into the exchange wallets. Exchange Outflow is defined as an amount of Stablecoin withdrawal from the exchange wallets.

Definition

Metrics

Description

Inflow Total

The total amount of Stablecoin transferred to the exchange.

Inflow Mean

The mean amount of Stablecoin per transaction sent to the exchange.

Inflow Top10

The total Stablecoin amount of the top 10 transactions inflow to the exchange.

Inflow Mean(MA7)

The 7 days moving average of mean Stablecoin inflow to the exchange.

Metrics

Description

Outflow Total

The total amount of Stablecoin transferred from the exchange.

Outflow Mean

The mean amount of Stablecoin per transaction sent from the exchange.

Outflow Top10

The total Stablecoin amount of the top 10 transactions outflow from the exchange.

Outflow Mean(MA7)

The 7 days moving average of mean Stablecoin outflow from the exchange.

The mean value is the In/Outflow Total divided by the Transactions Count In/Outflow.

Interpretation

By value itself

**Increase of inflow**to exchanges is mostly a**Bullish**sign**Increase of outflow**from exchanges is mostly a**Bearish**sign

Considering the fact that moving coins costs fees, wallets outside from exchange send their coins to the exchanges for two possible reasons.

1) To buy coins - Bullish

In the case of inflow to spot exchange, it is highly likely that investors are sending Stablecoins for buying coins.

This reason of action mostly leads to the price rise which indicates a bullish sign.

2) To trade in derivatives market - volatility risk

The purpose for sending coins to derivative market wallets indicates that more trades will be happening on the derivative market. This could possibly lead to increased volatility risk as a result of increased trading activity, investors looking to take profits, and/or to rebalance to de-risk their investment portfolios. This type of action has difficulty in deciding the effect on price since coins in the derivative market could be used to open both long/short positions.

Instead, it should be interpreted as increased volatility risk.

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