Inflow Transaction Count
Overview
IntoTheBlock has built a proprietary machine learning powered classifier to identify addresses of top centralized exchanges, including their deposit addresses, withdrawal addresses, hot wallets and cold wallets. With this classifier, IntoTheBlock can measure the total number of transactions that involve funds flowing into exchanges for a given crypto-asset. The result is displayed through the Inflow Transaction Count.
💡 How can I use it?
As the name suggests, the Inflow Transaction Count indicator provides the number of incoming crypto transactions entering exchanges. While the Inflow Volume measures the aggregate dollar amount, which is influenced by whales’ transactions, the Inflow Transaction Count is a better approximation of the number of users sending funds into exchanges.
This indicator has also shown to rise along and anticipate periods of high volatility. For example, on September 1st, inflow transactions for Bitcoin hit a 3-month high preceding a decrease in price of 14% over the following 48 hours. While this pattern does tend to emerge, natural fluctuations in inflow transactions can also increase at times.
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