Definition. Exchange Reliance Ratio measures the net token flow (inflows minus outflows) at an exchange relative to that exchange's total balance, capturing how dependent a token's liquidity is on the specific platform.

Technical. The ratio is bounded between -1 and +1, with the sign carrying the direction of net cross-exchange flow. Exchange metrics are based on Glassnode's continually updated set of labeled exchange addresses, together with statistical and data-science methods that are refined over time. The series is therefore mutable: its established history is stable, but recent data points may revise as labels update. For methodology and limitations, see our article on exchange metrics and Exchange Data Transparency Notice.

Interpretation. Elevated values indicate liquidity concentration within a single exchange and amplified systemic risk if disruptions occur, while extremely low values may signal insufficient liquidity if the condition persists.

Notes. Introduced by CryptoVizArt. For further details, see his introductory article.