Definition. This chart presents the relative dominance of exchange inflow and outflow volumes with respect to the total on-chain transfer volume, via the following traces:

• 🔵 Total 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) / Total ETH Transfer Volume

Unlike the Bitcoin counterpart, the denominator is the total transfer volume rather than a change-adjusted one — change adjustment is a UTXO-model concept and does not apply to Ethereum's account-based ledger.

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, DeFi 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 Transfer Volume. The count-based analogue is charted in Exchange Transaction Dominance, and the Bitcoin 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