Definition. This chart presents the relative dominance of exchange inflow and outflow volumes with respect to the global transfer volume (change-adjusted basis), via the following traces:

• 🟠 Total Change-Adjusted Transfer Volume [USD]
• 🟢 Exchange Inflow Volume [USD]
• 🔴 Exchange Outflow Volume [USD]
• ⚫ Exchange Volume Dominance (%) (grey columns)

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

• Exchange Volume Dominance (%) = (Inflows + Outflows) / Change-Adjusted Transfer Volume

The change-adjusted denominator strips out change outputs returning to the sender, so the ratio compares exchange flows against an estimate of true economic transfer volume.

Interpretation. This dominance measure describes how much of all on-chain value movement is exchange-related. High and rising dominance indicates activity concentrating around trading venues, characteristic of speculative phases in which coins move primarily to and from markets; low or declining dominance indicates value transfer migrating away from exchanges, toward custody, peer-to-peer settlement and other non-trading use. Reading the inflow and outflow traces alongside the dominance columns shows whether exchange-heavy periods are biased toward deposits or withdrawals.

Notes. Built from Exchange Inflow Volume, Exchange Outflow Volume and Change-Adjusted Transfer Volume. An entity-adjusted variant is available in Exchange Volume Dominance (EA), the count-based analogue in Exchange Transaction Dominance, and the Ethereum counterpart in Exchange Volume Dominance.

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