Description
Definition. This chart presents the relative dominance of exchange-related deposits and withdrawals with respect to all confirmed Ethereum transactions. It presents the following traces:
- 🔵 Total Transaction Count
- 🟢 Total Deposit Transactions
- 🔴 Total Withdrawal Transactions
- âš« Exchange Transaction Dominance (%) (grey columns)
Technical. Exchange Transaction Dominance (%) is calculated as follows:
Exchange Transaction Dominance (%) = (Deposits + Withdrawals) / Total Transaction Count
Interpretation. This ratio measures the share of Ethereum's daily transaction load that directly touches exchanges. High dominance indicates blockspace demand centered on trading flows — depositing coins for sale and withdrawing purchased coins — while falling dominance signals a growing share of activity happening elsewhere on the network. For Ethereum specifically, the total transaction count includes contract interactions (DeFi, NFTs, token transfers and other smart-contract usage), so exchange dominance is naturally diluted during periods of heavy on-chain application activity; a sustained shift in this ratio therefore also reflects the changing composition of Ethereum usage between centralized trading and on-chain applications.
Notes. Built from Exchange Deposits, Exchange Withdrawals and Transaction Count. The equivalent chart for Bitcoin is Exchange Transaction Dominance; see also the value-based counterpart Exchange Volume Dominance.
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