Definition. This chart presents the relative dominance of exchange-related deposits and withdrawals with respect to all confirmed Bitcoin transactions, measured against an entity-adjusted transaction count. It presents the following traces:

• 🟠 Total Entity-Adjusted Transaction Count
• 🟢 Total Deposit Transactions
• 🔴 Total Withdrawal Transactions
• ⚫ Exchange Transaction Dominance (%) (grey columns)

Technical. Exchange Transaction Dominance (%) is calculated as follows:

• Exchange Transaction Dominance (%) = (Deposits + Withdrawals) / Entity-Adjusted Transaction Count

The denominator discounts transactions occurring between addresses of the same entity (for example internal wallet management by exchanges and custodians), leaving only transactions that transfer value between distinct economic actors.

Interpretation. By stripping internal, non-economic transactions from the denominator, this variant expresses exchange deposits and withdrawals as a share of genuinely economic network activity, and typically prints higher dominance values than the raw variant. High readings indicate that exchange interaction is the dominant economic use of Bitcoin blockspace, characteristic of trading-heavy regimes; declining readings indicate growth in non-exchange economic transfers. Comparing this chart against the raw-count variant also gives a sense of how much of total network activity is internal churn rather than economic settlement.

Notes. Built from Exchange Deposits, Exchange Withdrawals and the Entity-Adjusted Transaction Count. See also the raw-count variant Exchange Transaction Dominance and the value-based analog Exchange Volume Dominance (Entity-Adjusted).

Disclaimer: 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