Definition. This chart seeks to identify macro trend shifts in exchange-related volumes by comparing the Monthly Average 🔴 of combined exchange inflows and outflows against the Yearly Average 🔵, plotted over the raw combined volume (faint orange) and price (grey).

Technical. The momentum traces are simple moving averages of the combined USD-denominated flow volume:

• Combined Volume = Exchange Inflows + Exchange Outflows (USD)
• Monthly Average = sma(Combined Volume, 30) 🔴
• Yearly Average = sma(Combined Volume, 365) 🔵

Interpretation. The crossovers between the two averages underline relative shifts in exchange activity:

• When 🔴 is Above 🔵 indicates an expansion in exchange related on-chain activity, typical of higher investor interest in the asset, and growing network utilization.

• When 🔴 is Below 🔵 indicates a contraction in exchange related on-chain activity, typical of lower investor interest in the asset, and declining network utilization.

Because exchange flows concentrate around trading decisions, this momentum measure tracks investor engagement with liquid markets specifically, and is best read alongside the equivalent momentum views of broader network activity.

Notes. Built from Exchange Inflow Volume and Exchange Outflow Volume. The same monthly-vs-yearly framework is applied in Active Address Momentum, New Address Momentum, Transaction Count Momentum and Transfer Volume Momentum. See the Ethereum counterpart Exchange Volume Momentum.

Transparency Notice: Exchange balances presented are derived from Glassnode’s comprehensive database of address labels, which are amassed through both officially published exchange information and proprietary clustering algorithms. While we strive to ensure the utmost accuracy in representing exchange balances, it is important to note that these figures might not always encapsulate the entirety of an exchange’s reserves, particularly when exchanges refrain from disclosing their official addresses. We urge users to exercise caution and discretion when utilizing these metrics. Glassnode shall not be held responsible for any discrepancies or potential inaccuracies. Please read our Transparency Notice when using exchange data